State-owned oil cos post bumper growth after fuel price hike

Four state-owned petroleum distribution companies – Padma Oil, Meghna Petroleum, Jamuna Oil, and Eastern Lubricants – saw a whopping profit growth in the July-December period of the fiscal year 2022-23, thanks to hike in fuel prices.

Though an unprecedented fuel price hike by the government hammered people’s lives enormously it appeared as a boon for the shareholders of these fuel and power sector companies.

When a company grows with a hefty profit surge, its investors or shareholders also benefit from that growth, according to market analysts.

The government in early August last year hiked fuel prices, which was the second month of the current fiscal year 2022–23.

As per the new price tag, the selling price of both diesel and kerosene is Tk 109 per litre, while Tk 125 for petrol and Tk 130 for octane per litre at the refueling stations.

Among the state-owned fuel distribution companies, Padma Oil Company’s net profit jumped 38.22 per cent to Tk 158.4 crore in July-December of FY23 from Tk 114.6 crore in the same period last fiscal, as per its un-audited financial report. 

The listed company’s earnings per share (EPS) stood at Tk 16.13 for the first half of FY23 against Tk 11.67 for the same period a year before. 

Its earnings increased due mainly to the surge in non-operating income and an increase in sales volume, the company said. 

Padma Oil’s EPS was reported Tk 8.92 for the October-December quarter of the current fiscal year which was Tk 5.92 for the same period of the last fiscal.

The state-owned company’s consolidated net operating cash flow per share (NOCFPS) stood negative Tk 101.80 for the July-December of 2022 against Tk 13.61 for the July-December 2021.

Its net asset value (NAV) per share was Tk 196.51 as on December 2022 which was Tk 180.38 till June 2022.

Meanwhile, Jamuna Oil Company reported a net profit of Tk 168.6 crore in the first half of FY23 which was Tk 93.09 crore in the same period last fiscal.

Its EPS stood at Tk 15.27 for the July-December period of FY23 against Tk 8.43 for the same period of last fiscal. 

It reported EPS of Tk 9.29 for the October-December quarter of FY23 which was Tk 4.76 for the Q2, the year before.

The state-owned company said its earnings soared owing to an increase in net earnings on petroleum products and interest on bank deposits. 

The company’s NOCFPS stood at Tk 87.55 for H1 of FY23 against Tk 11.21 for H1 of FY22.

Its NAV per share was reported as Tk 201.89 till December 2022. 

NOCFPS surged due to an increase in creditors for supplies and a surge in operating and other income, the company stated in its financial report.

Eastern Lubricant Blenders, another State-owned company, witnessed a 122.86 per cent year-on-year jump in net profit in H1 of the current fiscal.

The company’s net profit rose to Tk 78 lakh in the first half of the current fiscal from Tk 35 lakh in the same period last fiscal.

Its EPS stood at Tk 6.51 at the end of December 2022, which was Tk 2.96 at the end of December 2021.

Moreover, it reported EPS of Tk 6.26 for the October-December quarter of FY23 against Tk 1.22 for the same quarter of FY22.

In July-December of FY23, another state-owned fuel distributor Meghna Petroleum reported a 33.82 per cent year-on-year profit rise.

Its profit jumped to Tk 184.4 crore in the July-December half of FY23, which was Tk 137.8 crore in the same period last fiscal.

The company reported EPS of Tk 17.04 for H1 of the current fiscal against Tk 12.74 for the same half of FY22. 

Moreover, as per the un-audited financial report, Meghna Petroleum’s EPS stood at Tk 8.34 for Oct-Dec’22 against Tk 6.51 for Oct-Dec’21.

Its NOCFPS was Tk 85.22 for Jul-Dec’22 against Tk 54.11 for Jul-Dec’21. The company’s NAV per share stood at Tk 191.19 as on December 2022.