Energypac Power incurs Tk98cr loss, declares no dividend for FY24

Energypac Power Generation PLC, which was listed on the bourses in 2021, has recommended no dividend for fiscal year 2023-24 due to substantial consolidated losses. 

This marks the first time in four years that the company has not recommended a dividend.

The company incurred a loss of Tk98 crore in FY24 and its consolidated loss for per share stood at Tk5.18, according to its annual corporate declaration.

Regarding the losses, Energypac Power said due to the current global economic conditions, marked by slower-than-expected recovery post-pandemic, geopolitical tensions such as the Russia-Ukraine conflict, interest rate hike, increasing fuel prices, and persistently high inflation, have significantly impacted the company's business performance and profitability.

"Additionally, the economic challenges specific to Bangladesh, including currency depreciation, supply chain disruptions, and rising import costs due to depleted foreign reserves have further adversely impacted resulting in lower profit and higher borrowing. Thus the way, EPS has decreased significantly for the year," the company said.

To procure LPG carriers and accessories, import of LPG cylinders and repayment of loans, the power producer had raised Tk150 crore from the capital market issuing shares, it said.

After being listed on the bourses, Energypac Power paid a 10% cash dividend for FY21 and FY22 each. It paid a 5% cash dividend for FY23.

On 25 September, the Dhaka Stock Exchange (DSE) downgraded Energypac Power to the Z category from the B category as it failed to disburse at least 80% of its 5% declared cash dividend. 

Upon distribution of the dividends, on 29 September, the DSE placed the fuel and power sector firm in the B category.

In FY23, it incurred a loss of Tk68.94 crore on a consolidated basis. The loss per share for FY23 was Tk2.36, according to its annual report. 

But on a solo basis, Energypac Power made a profit of Tk14.34 crore and EPS was Tk0.75 in FY23.