Home ›› 02 Nov 2022 ›› Front
The country’s publicly traded electricity producers braced for a massive setback in the fiscal year 2021-22 as most of the power companies’ earnings fell year-on-year in FY22, thanks to the energy supply shortage and a drastic rise in energy prices in the global market triggered by the Russia-Ukraine war.
Besides, the steep devaluation of the domestic currency against the dollar also added a fresh blow to their hardships, industry insiders said.
Out of the eight listed power generation companies in Bangladesh, seven firms registered a negative growth in their earnings per share (EPS) in FY22.
Doreen Power Generations and Systems Limited was the lone power producer that posted positive growth in FY22, according to reports filed by the companies with the Dhaka Stock Exchange (DSE).
Industry insiders said the Russian-Ukrainian conflict created economic uncertainty across the globe with energy supply shortages, and price volatility, hitting the power businesses the hardest.
The consolidated earnings per share (EPS) of Summit Power, a subsidiary of Summit Group, also the first Bangladeshi Independent Power Producer, stood at Tk 3.87 for the year ended in June 2022 against an EPS of 5.25 for the previous year.
The board of directors of the company recommended a 20 per cent cash dividend for FY22.
United Power Generation and Distribution Company Limited, another top electricity producer in the country, posted a consolidated EPS of Tk 17.21 for FY22 against Tk 18.80 for FY21.
The company, however, recommended a 170 percent cash dividend for the year ended in June 2022.
The company said its earnings dropped in the last fiscal mainly due to the heavily inflated fuel oil prices in the international market.
The Russian-Ukrainian war posed serious economic uncertainty and volatility along with energy supply shortages and price hikes across the globe, pushing us on a razor edge, United Power said.
Baraka Group’s two publicly traded power generation companies — Baraka Power and Baraka Patenga Power Limited — declared a 10 per cent dividend to their shareholders for FY22 despite their falling profits.
Baraka Power’s earnings per share stood at Tk 2.13 for FY22 against Tk 3.17 (restated) for the previous fiscal year.
On the other hand, Baraka Patenga Power Limited (BPPL) reported an EPS of Tk 1.25 for the fiscal year 2021-22 versus Tk 3.60 (restated) for the year ended in June 2021.
The company said its consolidated EPS had plummeted last fiscal due to a significant loss in foreign currency transactions.
Another power producer GBB Power reported a consolidated EPS of Tk 1.01 for the year ended in June 2022 against Tk 1.49 for the previous year.
The company’s board of directors recommended a 3 per cent cash dividend for the year that ended on June 30 this year.
The company’s earnings fell due to a major overhaul of a power generating unit, it said.
The EPS of Khulna Power Company Limited also decline in fiscal 2021-22.
The company reported an EPS of Tk 0.03 for the year ended in June this year against Tk 0.87 for FY21.
The company’s board of directors recommended a 10 per cent cash dividend only for the general shareholders and an 8 per cent cash dividend for sponsors and directors for the year ended in June this year.
Meanwhile, Shahjibazar Power’s consolidated EPS dropped to Tk 4.30 in FY22 from Tk 6.28 in the previous fiscal.
According to the company, the key reasons for its declining earnings were a drop in profits at subsidiary and associate companies.
Doreen Power Generations reported a consolidated EPS of Tk 10.31 for the year ended June 30, 2022, against Tk 7.23 for the previous year, the lone publicly traded power producer registering a year-on-year rise in earnings.
The company’s board recommended a 12 per cent stock dividend for all shareholders and an 18 per cent cash dividend for shareholders excluding the sponsors and directors for the year ended in June 2022.
