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Summit Power’s profits grow by 9% YoY in H1

Staff Correspondent
25 Mar 2024 21:52:57 | Update: 25 Mar 2024 22:04:36
Summit Power’s profits grow by 9% YoY in H1

Net profits of Summit Power, the country’s largest private sector power producer, have increased by 9 per cent year-on-year in the first half of the fiscal year 2023–24.

However, the company did not cite any reason on the DSE website on Monday why its profits increased during this period.

Summit Power reported a net profit of Tk 182.60 crore in the first six months of FY24, compared to a profit of Tk 167.65 crore in the same period last fiscal year.

The company said that its consolidated EPS was Tk 1.71 during the July–December period of 2023 as against Tk 1.57 in the same period of the previous year.

The company's net asset value (NAV) per share stood at Tk 39.77 and net operating cash flow per share (NOCFPS) at Tk 2.21 in July–December 2023, compared to Tk 38.02 and Tk 2.02 respectively in the previous fiscal year.

On the same day, the company released its financial report for the first quarter (July–September) of FY24 on the DSE website.

While the company posted a net profit of Tk 95.04 crore in the July–September period, the profit was Tk 86.49 crore in the same period of the previous year.

During this period, the company said that its consolidated EPS was Tk 0.89 in July–September 2023 as against Tk 0.81 in July–September 2022.

While Summit Power's net profits increased in the first six months of FY24, the company's profits fell by 47 per cent at the end of FY23 compared to the previous year.

For this, the publicly traded company has declared its lowest dividend in eight years for its shareholders for FY23. It declared a 10 per cent cash dividend for its shareholders for the fiscal year ended on June 30, 2023.

The dividend amount was 20 per cent in the previous fiscal year (FY22).

Summit Power's net profits fell by 46.48 per cent to Tk 221 crore in FY23, which was Tk 413 crore the year before, according to the financial statement.

Summit Power, a subsidiary of Singapore-based holding company Summit Power International (SPI), owns and operates 15 power plants in different parts of Bangladesh with a total installed capacity of 975.96 megawatt.

Listed on the Dhaka bourse in 2005, the company has a paid-up capital base of Tk 1,067 crore. At the end of Thursday's trading session, Summit Power share's closing price was Tk 24 each at the Dhaka bourse.

Summit Power International (SPI) established Bangladesh's first independent power plant in 1997, and is now the largest Independent Power Producer (IPP) in the country, reflecting 17 per cent of total private installed capacity and 7 per cent of total installed capacity.

SPI owns and operates a total of 18 power plants--in operation or under development--with a total capacity of 2,255 MW, a further 277 MW through its associate company Khulna Power Company Limited (KPCL), and operates Bangladesh's second Floating Storage and Regasification Unit and LNG import terminal with a capacity of 500 mmcf/d, as per its website.

Bangladesh is largely dependent on the private sector for electricity, which supplies more than 50 per cent of the total power generated.