Meghna Petroleum logs record profit on higher margins, bank income

Meghna Petroleum posted a record profit of Tk 6.64 billion in FY25, driven by higher sales margins and substantial income from bank deposits.

The annual profit grew by 23 per cent year-on-year for the year ended in June this year, according to a stock exchange filing on Monday. With that, the company's earnings per share (EPS) rose to Tk 61.39 for FY25 from Tk 50.11 for the previous year.

Meghna Petroleum benefited from an increase in the sales margin per litre of refined products, said the company in its earnings note.

The government raised the margin on fuel sales by 60 per cent to Tk 0.80 per litre for the three state-owned oil marketing companies, including Meghna Petroleum, while the margin on octane and petrol rose by 50 per cent to Tk 0.90 per litre in March last year.

The record profit prompted the company to declare its highest-ever cash dividend - 200 per cent - for FY25, up from 170 per cent paid in the previous year.

Investors will receive Tk 20 per share from the yearly income of Tk 61.39 per share, meaning the company will distribute only one-third of its profit as cash dividends to shareholders for the year.

Although the sales margins rose, the state-owned fuel oil marketing companies, including Meghna Petroleum, rely heavily on income generated beyond their core business operations to maintain profit growth.

"They have huge amounts of bank deposits (FDRs) and earn significant income from such investments," said Akramul Alam, head of research at Royal Capital.

The company is yet to publish detailed financial data for FY25, such as total sales, interest income, or non-operating income.

However, its nine-month net sales rose 26 per cent year-on-year to Tk 2.20 billion through March this year. Operating income jumped 43 per cent year-on-year to Tk 960 million during the same period, while non-operating income surged around 32 per cent to Tk 4.66 billion, owing to rising interest rates.

Sales revenue increased as demand for fuel grew during the year, alongside a higher sales margin. At the same time, interest income rose in FY25 compared to the year before, as banks offered higher deposit rates.

Meghna Petroleum had investments worth Tk 15.52 billion in short-term instruments as of March this year, according to its financial statements.

Market analysts said the growth in interest income indicated that the company had set aside funds to generate interest income instead of distributing a higher cash dividend.

"Meghna Petroleum's record profit was largely fuelled by a sharp rise in non-operating income from bank deposits," said Mr Alam. "The company retained profits for investments in fixed-income instruments so it could maintain significant returns."

The company's annual general meeting (AGM) will be held on January 24 next year and the record date for entitlement of dividends is December 10 this year.

Following the latest disclosure, the stock rose 1.42 per cent to Tk 213.80 per share on Monday on the Dhaka Stock Exchange (DSE), even as the overall market continued to fall.

Q1 FY26 Results

Meghna Petroleum's profit for July-September 2025 also rose 12 per cent year-on-year to Tk 1.55 billion, again supported by non-operating income.

However, its income from petroleum products declined 10 per cent year-on-year to Tk 635 million in the quarter.

The company's operating income plunged 37 per cent year-on-year in Q1 FY26, while non-operating income rose 26 per cent to Tk 1.86 billion in the quarter, reflecting its continued reliance on fixed-income earnings for growth.

Meghna Petroleum's short-term investments (FDRs) stood at Tk 12.68 billion as of September 2025, down from Tk 15.68 billion in March this year.

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