MJL Bangladesh PLC has decided to purchase a new 11,000 CBM pressurized LPG tanker for $32.50 million – equivalent to approximately Tk 350 crore in local currency – from Japan, according to the Dhaka Stock Exchange (DSE) website on Tuesday.
The company board also approved an additional $1.50 million for shipbuilding supervision fees, consultancy fees, modification-related expenditures, takeover expenses, legal fees, operational expenses, travel expenses, reads the notice on DSE website.
Providing more details, MJL Bangladesh company secretary Rakibul Kabir said, “The vessel will be handed over by 2026. An official agreement has recently been signed in this regard. The LPG tanker will be made in Japan.
“We have another LPG tanker. This will be the second tanker in our fleet.”
In July this year, MJL Bangladesh also signed a contract with South Korea's DH Shipbuilding to acquire a third-generation oil tanker, which boasts an impressive capacity of 115,000 deadweight tonnes (DWT), for $75 million – a figure equivalent to approximately Tk 800 crore.
The deal was officially signed on July 20, with plans to launch the vessel during the first quarter of 2026.
According to the Bangladesh Ocean Going Ship Owners Association, there are over 60 ocean-going ships with Bangladeshi flags, but none of them have a capacity of 115,000 DWT. Presently, MJL Bangladesh owns one LR2 tanker built in 2005 and three LPG carriers.
Prior to this purchase, MJL's fleet included a vessel with a capacity of 107,000 DWT for transporting oil, but none of the existing ships were brand new.
Financial performance
MJL Bangladesh Ltd, widely known as Mobil Bangladesh, posted a 27.96 per cent year-on-year surge in net profits in the July-September quarter of FY24.
The publicly traded company’s profits rose to Tk 85.52 crore in the first quarter of FY24, compared to Tk 66.83 crore in the corresponding period last FY, according to the company’s financial statement.
The petroleum supplier displayed a strong corporate performance riding on the growing consumer base, as well as its solid business strategies.
This company’s consolidated earnings per share (EPS) stood at Tk 2.70 for the July-September quarter of FY24, against Tk 2.11 for the same quarter last FY. It had paid a 50 per cent cash dividend for FY23.
Company profile
MJL Bangladesh is a joint venture of EC Securities Ltd, a subsidiary of East Coast Group, and state-owned Jamuna Oil Company Ltd.
Mobil Corporation, later known as Exxon Mobil Corporation, decided to establish Mobil Jamuna Lubricants Ltd in partnership with the state-owned Jamuna Oil Company Ltd in 1998. With its journey, the blending of international standard lubricants began in Bangladesh.
MJL Bangladesh reported a consolidated net operating cash flow per share of Tk 1.88 in FY23, compared to Tk 4.58 posted in the previous FY. The company got listed on the stock exchanges in 2011.
Shares of MJL Bangladesh unchanged to Tk 86.70 on the DSE on Tuesday.
The company’s sponsors-directors hold a 71.52 per cent stake in the company, while institutes own 22.07 per cent, foreigners 0.03 per cent, and individual shareholders 6.38 per cent until November 2023.
