Associated Oxygen posts 24% profit drop

Industrial and medical gas producer and supplier Associated Oxygen Limited has registered a 23.74% year-on-year fall in profit in fiscal 2021-22 in its latest financial report.

Following the decline in profit, the company recommended a 10% cash dividend for general shareholders, except director-sponsors, whereas in the previous fiscal year, it had paid a 5% cash and a 7% stock dividend.

In fiscal 2021-22, the company posted earnings per share (EPS) of Tk1.67 which was Tk2.19 in the previous fiscal year.

Earlier on 5 November, Associated Oxygen said it planned to make a fresh investment of Tk250 crore after raising the fund with a convertible bond.

In price-sensitive information on Monday, the company said it decided to increase its authorised capital to Tk40 crore from Tk25 crore.

The decision to increase the authorised capital is subject to the approval of the shareholders in the extraordinary general meeting (EGM) by amending the articles of association of the company.

The annual general meeting and EGM of the company are scheduled to be held on 28 December through a virtual platform. The record date has been fixed as 30 November to identify the shareholders of the company.

Associated Oxygen entered the capital market in 2020 and raised Tk15 crore for expanding its business. But until 2022, the company was able to use 75% of its initial public offering (IPO) fund and is yet to import machinery.

Currently, the company has the capacity to produce 2,500 cubic metres of oxygen/nitrogen gas per hour and 2,00,000 cubic metres of dissolved acetylene gas per annum in its factory in Sitakunda upazila of Chattogram.

Incorporated in 1990, the company went into commercial operation in 1992.

On Monday, its shares closed at Tk36.50 each on the Dhaka Stock Exchange.

Until 30 September this year, sponsors and directors jointly held 30.65%, institutions 25.69%, foreign investors 0.09% and general investors 43.57% shares of the company.