Home ›› 10 Dec 2022 ›› Stock
With an aim to diversify the business model, Navana CNG Limited, a leading CNG service provider in the country, expanded its footprint in liquefied petroleum gas (LPG) services four years ago.
But the recent unstable global energy market caused by the Russia-Ukraine war appeared a massive blow to the publicly traded company with its first quarterly earnings falling to a five-year low in the current fiscal year 2022–23.
The company’s earnings per share (EPS) stood at Tk 0.04 in the July-September period of FY23 against Tk 0.06 in the same period last fiscal.
The earnings made in the latest quarter were the lowest first quarterly earnings in the last five years, according to the company’s Q1 financial statement.
During the same period, the company’s net profit fell to Tk 0.27 crore against the figure of Tk 0.43 crore in the July-September period of the last fiscal year.
The CNG service provider’s first quarterly net profits were Tk 2.72 crore and Tk 2.25 crore respectively in FY19 and FY20.
The company blamed the Russia-Ukraine war for the fall in its net profit as well as earnings per share because the prices of energy fuels went up manifold in the global market due to the war.
Navana CNG Limited’s Company Secretary Nafis Ahmed told The Business Post that though its first quarterly income was low, it would not be the same in the coming quarters as the global fuel energy market started to normalise in recent months.
“Our overall business is going well. But the war has hampered the LPG imports,” he said adding that it is also true the company’s LPG business has been loss-incurring since the start of the LNG service operation.
In terms of the first quarterly revenue generation in the last five years, the company recorded the highest revenue of Tk 162.9 crore in FY20 and the lowest revenue of Tk 102.35 crore in FY23.
Navana CNG Limited, a sister concern of Navana Group, is a leading CNG service provider in Bangladesh.
Currently, it is operating 19 CNG re-fueling stations and 8 CNG conversion workshops located in various locations across the country.
According to the company’s profile, it is the sole distributor of Italy-based CNG and LPG conversion kit manufacturer Landirenzo, and the Europe-based renowned manufacturer of CNG re-fueling station technology–Safe.
It has also set up a modern CNG cylinder re-testing centre in collaboration with Argentina-based Airblast SA.
At the same time, Navana CNG Limited has collaborated with Ngv Motori for diesel-driven generator conversion into a diesel gas system.
Navana’s wide array of businesses includes CNG/LPG cylinders, batteries, generators, safety equipment, industrial products like petroleum, logistics, building products, and many other businesses and services.
Navana CNG Limited got listed on the Dhaka and Chittagong stock exchanges back in 2009.
With an authorised capital of Tk 150 crore, the company has a paid-up capital base of Tk 71.95 crore with 7.19 crore of securities.
Its sponsor-directors own 42.49 per cent stake in the company, while institutional investors hold 27.49 per cent and the general public represent 30.02 per cent till October 2022, according to DSE data.
