Eastern Lubricant's profit falls 42% in Oct-Dec
The company recommends 60% cash and 10% stock dividends for FY23
Publicly listed Eastern Lubricant Blenders Ltd has reported a 42% year-on-year decline in profit in the October-December quarter of the ongoing 2023-24 fiscal year.
The state-owned oil importer's net profit stood at Tk43.32 lakh in the second quarter of FY24, which was Tk74.67 lakh in the same period previous fiscal. Its earnings per share stood at Tk3.30.
In a stock exchange filing on Tuesday, the company stated that its profit decreased because of a significant decline in its revenue.
According to its half-yearly financials, the company's revenue dropped 97% year-on-year to Tk27.46 crore in the July to December period of FY24. Its half-yearly net profit fell by 7% to Tk71.78 lakh, compared to the first half of FY23.
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In FY23, the company's revenue stood at Tk58.70 crore and profit Tk2.83 crore. The company recommended 60% cash and 10% stock dividends for FY23.
To secure shareholders' approval of this dividend, the company has scheduled an annual general meeting (AGM) on 3 February.
Eastern Lubricant, publicly listed since 1976, procures base oil from international markets and then blends and supplies the oil to three distributors throughout the year.
On Tuesday, its shares closed at Tk1,549.20 each on the Dhaka Stock Exchange, 1% lower than what the share price was in the previous trading session.
As of 31 December 2023, sponsors and directors jointly held 15.04%, government 51%, institutions 5.77%, and general investors 28.19% shares of the company.
