Home ›› 19 Feb 2022 ›› Stock
The United Power Generation and Distribution Company Limited (UPGDCL) is setting up a 600 MW liquefied natural gas (LNG)-fired power plant in Chattogram with an investment of $500 million (Tk 4,297 crore).
The listed power generation company has already started the construction work at Anwara in the port city, according to the company’s annual report for the financial year 2020-21.
“Finally, the construction work of our 600 MW LNG-based power plant started at Anwara of Chattogram with an investment of $500 million,” United Group Chairman Moinuddin Hasan Rashid was quoted as saying in the report.
The combined cycle power plant (CCPP) will be the country’s first and largest single unit power plant in terms of capacity, utilising a single gas turbine and steam turbine power train.
Currently, the company, with its eight power plants across the country, has a combined power generation capacity of 895 MW. It accounts for around 9 per cent of the consolidated power generation capacity of all private plants.
The UPGDCL mainly supplies electricity to the Dhaka Export Processing Zone (DEPZ) and Chattogram Export Processing Zone (CEPZ).
Besides, its heavy fuel oil (HFO)-powered subsidiaries provide electricity to the national grid.
Business Scenario
The power generation company registered a significant growth in all parameters of business performance.
Its year-on-year revenue jumped 203 per cent to Tk 3,058 crore in FY21, while the net profit rose 83 per cent to Tk 1,111 crore.
The good performance was attributed to the company’s acquisition of two HFO-fired power plants in Jamalpur and Anwara at the beginning of the financial year 2020-21.
It invested $ 64 million (Tk 536 crore) to acquire 99 per cent stakes in each of the plants.
The two plants boosted UPDGCL’s power generation capacity by 415 MW to 895 MW.
Loan and Assets
The UPGDCL currently has assets worth Tk 6,767 crore, according to the report. Of it, the equities of shareholders are amounted to Tk 3,309 crore.
Its long-term debt stood at Tk 527.51 crore after its subsidiary United Jamalpur Power Ltd (UJPL) issued preference shares worth Tk 1,550 crore to settle the capital machinery payments.
Besides, the company’s net operating cash flow stood at Tk 1,575 crore during the period.
Other Projects
The UPGDCL is heavily investing in multiple sectors and has a number of project in hand.
It has undertaken a township project -- United City – in the capital’s Satarkul area.
“With over 300 acres of land, we envisage that the United City is on course to becoming a self-sustaining town in one of the most premiere locations of Dhaka,” said the company.
Apart from that, the UPGDCL is constructing an integrated commercial complex -- Centre Point – near the Hazrat Shahjalal International Airport in Dhaka.
Thanks to the good business, the company maintained a fair share price at the bourses throughout the last fiscal year.
The UPGDCL shares moved between Tk 321.10 and Tk 220 in the year.
