United Power suffers profit decline in Jul-Mar

United Power Generation and Distribution Company displayed an 18.5 per cent plunge in its net profit in the first nine months of the fiscal year 2022-23.

The country’s second largest power producer’s net profit dropped to Tk 819 crore in the July-March period of the current fiscal from Tk 1005 crore in the same period last fiscal.

The listed company’s consolidated earnings per share (EPS) fell to Tk 14.13 for the July-March period of FY23, a decline from Tk 17.34 for the corresponding period last fiscal.

Meanwhile, its consolidated EPS for the current fiscal’s January-March quarter stood at Tk 4.28, against Tk 5.50 for the same quarter of the fiscal 2021-22.

The power producer’s consolidated net operating cash flow per share (NOCFPS) was Tk 13.07 for the July-March of fiscal 2022-23, up from Tk 8.66 for July-March of the fiscal 2021-22.

The company’s consolidated net asset value (NAV) per share was Tk 53.51 as on March 31 this year, which was Tk 56.38 till June 30 last year.

A major cause for the significant deviation in its earnings was due to the hike in gas prices for IPP customers, as per the company’s latest financial report.

However, the NOCFPS increased due mainly to the substantial collection of receivables from customers.

United Power has three subsidiaries— United Jamalpur Power Ltd (UJPL), United Anwara Power Ltd (UAnPL), and United Energy Ltd (UEL).

It owns a 99 per cent stake in each of its subsidiaries.

United Power is slated to receive interim cash dividends worth Tk 1137.5 crore from its subsidiaries for the first three quarters of the current fiscal.

Of them, UJPL declared an interim cash dividend of Tk 260 per share, involving Tk 260 crore, while UAnPL Tk 555 per share, involving Tk 555 crore, and UEL Tk 1,07,500 per share, involving Tk 322.5 crore.

The listed company suffered a 28.13 per cent year-on-year profit decrease in the second quarter of the current fiscal year due to the scheduled load shedding, stunning appreciation of the US dollar, and increased operational costs.

The company’s shares have been stuck at the floor price of Tk 233.70 on the DSE trading floor since November 2022.

Sponsors and directors held a 90 per cent stake in the company, while institutional, foreign, and general investors owned 7.35 per cent, 0.02 per cent, and 2.63 per cent, respectively till December 31 last year.