Titas Gas's loss swells in Q3 on higher expenses

Titas Gas Transmission and Distribution showed a hefty loss of Tk 2.36 billion in the third quarter of FY25 despite a 3.4 per cent year-on-year revenue growth.

It was unable to generate enough income to cover the cost of producing and delivering the gas.

The natural gas distributor's loss per share jumped to Tk 2.39 for January-March this year from Tk 2.14 for the same quarter the year before, according to price sensitive information disclosed on Tuesday.

Titas Gas is responsible for transmitting and distributing natural gas to power plants, fertilizer manufacturing companies, other industries, commercial establishments, and domestic consumers within its designated area.

In the third quarter through March, Titas earned Tk 90.23 billion in revenue but spent Tk 90.46 billion for producing and transmitting natural gas.

So, the company suffered a gross loss of Tk 0.23 billion in the quarter. Then other expenditures, such as administrative expenses and finance expenses, added to the loss.

The other reasons behind the revenue shortfall are high system losses and higher tax burden.

In the nine months through March this year, losses amounted to Tk 9.48 billion, up 474 per cent from the same period a year ago.

Meanwhile, the stock fell 0.50 per cent to Tk 19.80 per share on Tuesday on the Dhaka Stock Exchange.

farhan.fardaus@gmail.com