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Company profile

United Power now fourth largest market cap co

FE Report | Published: June 23, 2018 13:02:50 | Updated: June 24, 2018 13:21:52


File Photo (Collected)

The United Power Generation & Distribution Company Limited witnessed a steady growth in its net profit and emerged the fourth largest market cap listed company.

The power generation company's total market capitalisation surpassed US$ 1.0 billion recently.

It stood at Tk 109 billion (approximately US$ 1.30 billion) on Thursday.

The fourth largest market-cap listed company of the Dhaka Stock Exchange (DSE) is preceded by Grameenphone with Tk 517 billion, Square Pharmaceuticals Tk 209 billion and British American Tobacco Tk 207 billion.

The power sector company's total sales of electricity stood at 950.36 million kWh with an average capacity utilisation of 76 per cent in Fiscal Year (FY) 2016-17.

"This is quite remarkable considering the "low gas pressure" situation the power plants suffered during the peak season, especially at the DEPZ Plant," said the company's chairman Md. Abdul Mubeen in its latest annual report.

Total revenue of the company stood at Tk 5.74 billion for the year ended on June 30 2017 on account of sale of electricity.

"Sales to private customers more than doubled during the same period," said Mr. Mubeen.

The company maintained a healthy gross profit margin of 70 per cent.

It cascaded into a resultant net profit of Tk 4.17 billion, nearly 11 per cent higher than that of the previous 12 months, he said.

"United Power is now a completely debt-free company," Mr. Mubeen stated.

Total equity of the company reached Tk 14.96 billion bolstered by retained earnings growth of 38 per cent compared to the last reporting period.

Shareholders' value addition has been adequately reflected in the market capitalisation growth of nearly 25 per cent at the end of FY 2016-17.

The share price of the power generation company closed at Tk 262.80 on Thursday at the Dhaka bourse.

The company's share price showed sharp rise in recent weeks after a report published in the media.

The report says the "United Power is purchasing three power plants of the group".

However, the company replied to a DSE query that the board of directors in principle has not taken any decision in this regard till date.

United Power, which was listed with the Dhaka bourse in 2015 under the book building method, disbursed 90 per cent cash and 10 per cent stock dividends for the year ended on June 30, 2017.

The company's paid-up capital is Tk 3.99 billion, authorised capital Tk 8.0 billion and the total number of securities 399.24 million.

Sponsor-directors own 90 per cent stake in the company and institutional investors 5.77 per cent and the general investors 4.23 per cent as of May 31, 2018.

The company's earnings per share (EPS) for nine months from July 2017 to March 2018 stood at Tk 8.41 against Tk 8.05 for the corresponding period of the previous fiscal.

In the nine months of the current fiscal, the company's total revenue stood at Tk 4.54 billion and the company made a profit of Tk 3.35 billion (un-audited).

The net asset value (NAV) per share was Tk 37.71 as of March 31, 2018 and Tk. 37.47 as of June 30, 2017.

The net operating cash flow per share (NOCFPS) was Tk 8.0 for July 2017 to March 2018 against Tk 8.60 for the same period of the previous fiscal.

The principal activity of the company is electricity generation by its two gas-fired units.

It operates several gas-fired power engines and mostly supplies electricity to Dhaka and Chittagong export processing zones.

United Power also supplies and sells electricity directly to private companies.

Dhaka and Chittagong export processing zones and Bangladesh Power Development Board are the major revenue contributors.

The United Power has plans to undertake further capacity expansion to cater to the increasing demand.

babulfexpress@gmail.com

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