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Summit Power Limited reported a decline of 16.57 per cent in net profit to Tk 176 crore for the first quarter of this financial year due to its Madanganj Power Plant (Unit-1) shutdown.
In the previous quarter (July-September), it logged Tk 211 crore in profit, according to the company’s unaudited financial statement.
It reported a 20 per cent fall in consolidated earnings per share (EPS) to Tk 1.02 from Tk 1.29 during the period.
Its consolidated net operating cash flow (NOCFPS) was Tk 0.80, down as against Tk 1.25 a year ago. Net asset value (NAV) per share stood at Tk 36.20 as of September 30, 2021.
“Due to expiry of Power Purchase Agreement (PPA), there was no operation of Madanganj Power Plant (Unit 1), leaving a negative impact on the company’s profit,” said the company in the statement.
In April 2021, the 102-Mega Watt capacity Heavy Fuel Oil-fired Madanganj Power Plant (Unit-1) at Narayanganj was shut down due to the expiry of PPA. The plant was commissioned in 2011.
However, the company said, “It is in talks with the relevant public agency to extend the PPA.”
A writ petition related to non-deduction on excess fuel outage on account of Summit Narayanganj Power Plant Unit-I was submitted to the High Court.
The court granted a stay-order in favour of non-deduction up to the physical functioning of the court. However, the company kept Tk 16.47 crore as the provision against doubtful debt, it said in the report.
On November 14, Summit Power Limited also shut down its another Chandina Power Plant Unit -2 due to the same reason, the company said in a filing with the Dhaka Stock Exchange on Monday.
As the PPA term is over, the plant is in shut-down condition from midnight of November 14, 2021, until further instruction from the Bangladesh Rural Electrification Board or ministry for the operation of the Power Plant, it said.
The company had applied for an extension of the contract for the supply of electricity to the governemnt on February 18, 2021, which is under active consideration, it added.
On September 16, the parliament passed a bill to extend the term of a special law to run rented power plants for another five years to meet the power shortage on an emergency basis although the government had earlier said that it would no more extend the timeframe.
