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Doreen Power Generations and Systems Limited (DPGSL) witnessed a 75.8 per cent plunge in its net profit in the first nine months (July-March) of the current fiscal year.
The power producer’s earnings depleted due mainly to its massive costs posed by volatile foreign currency exchange rates.
The electricity supplier to the Bangladesh Power Development Board (BPDB) reported a net profit of Tk 32.4 crore for the nine months of the fiscal 2022-23 against Tk 133.3 crore for the same period of last fiscal.
The publicly traded company’s profit dropped due to a significant increase in exchange losses in foreign currency transac-tions incurred by subsidiary companies due to the significant devaluation of the taka against the US dollar, the company said on Tuesday.
The cost of furnace oil, the fuel used to generate electricity, soared many times during the period, the company stated.
The company’s consolidated earnings per share (EPS) was Tk 1.79 for the July-March period of FY23, down from Tk 7.36 (restated) for the same period last year.
Similarly, Doreen Power registered a 66 per cent lower profit in the third quarter of FY23 on a year-on-year basis owing to a significant increase in exchange losses in foreign currency transitions.
The power generation company made a consolidated profit of Tk 18 crore in the January-March quarter, down from Tk 54 crore in the same quarter last year.
Its earnings per share decreased to Tk 1.03 forthe March quarter against Tk 3.02 for the same quarter a year ago.
However, the company incurred a loss of Tk 22 crore in the immediate past second quarter (October-December) of the cur-rent fiscal.
The company’s consolidated net asset value (NAV) per share with revaluation was Tk 48.71 as on March 31, 2023, and Tk 47.46 (restated) till June 30, 2022.
However, the deviation in consolidated EPS and consolidated NOCFPS was clarified by the company, which stated that the decrease in EPS was due to a significant increase in exchange loss in foreign currency transactions incurred by subsidiary companies due to the significant devaluation of the taka against the US dollar.
Meanwhile, NOCFPS increased significantly due to the significant recovery of receivables from the Bangladesh Power De-velopment Board than that in the last fiscal.
Despite the increase in NOCFPS, the company incurred a loss of Tk 22.3 crore in the second quarter of FY23.
The company’s shares have been stuck at the floor price of Tk 61 each since November 8 last year.
DPGSL through its three subsidiaries – Dhaka Southern Power Generations, Dhaka Northern Power Generations, and Chandpur Power Generations – have implemented three HFO based power plants with a total capacity of 225MW.
The company generated total revenue of Tk 1502 crore in the fiscal year 2021-22 with a gross profit of
Tk 309 crore and a net profit of Tk 167 crore compared to revenue Tk 665 crore, gross profit Tk 166 crore and net
profit Tk 117 crore in the fiscal year 2020-21.
The power producer’s revenue had increased by 125.70 per cent in FY22 due mainly to the newly added revenue from Chandpur Power and an increase in sales revenue of the two existing subsidiaries which resulted from increase in demand for electricity in the economy as well as increase in energy payment for increase in fuel price in international market.
Anjabeen Alam Siddique, chairman of DPGSL, said in the latest annual report that Bangladesh was also suffering from an energy crisis, a devaluation of the taka against US dollar and other foreign currencies, and a rapid decline in foreign ex-change reserves.
“As a major contributor to the economy, the power sector was also badly affected by these negative economic condi-tions.”
“I hope we will be able to overcome the crisis with various initiatives taken by the government, including others to encour-age more foreign remittances and discourage the import of non-essential goods,” he said.
