Shahjibazar Power secures 5-yr extension for electricity supply to national grid
The extension was formalised on 9 July through the First Amendment to the Agreement for Supply of Power on a rental basis
The Bangladesh Power Development Board (BPDB) has extended its long-term agreement with Shahjibazar Power Company for an additional five years, allowing the company to continue supplying electricity to the national grid.
Originally, Shahjibazar Power Company's agreement with the BPDB was set to expire on 9 February 2024. However, after considering the company's request for renewal, the BPDB decided to extend the agreement, according to a stock exchange disclosure.
The extension was formalised on 9 July through the First Amendment to the Agreement for Supply of Power on a rental basis.
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Under the new terms, the agreement follows a "No electricity, no payment" principle, meaning there is no guaranteed minimum off-take.
According to the company website, Shahjibazar 86 MW Gas Power Plant, also known as Shahjibazar Rental Power Plant, is situated at Fatehpur village of Shahjibazar under Madhabpur upazila in Habiganj.
The power plant was sponsored by Shahjibazar Power Company Limited, a subsidiary of Youth Group, as a rental power plant for 15 years.
Shahjibazar Power Company declared its commercial operation date on 10 February 2009 and, as per schedule, the power plant was scheduled to retire on 9 February 2024.
In the July-March quarter of the last fiscal year, the company made consolidated revenue of Tk958.81 crore, which was Tk609.90 crore compared to the same period of the previous year.
Its consolidated profit after tax stood at Tk74.07 crore higher than Tk4.32 crore a year ago.
Its earnings per share was Tk3.77, which was only Tk0.48 in one year before.
The consolidated net asset value of the company stood at Tk27.41 at the end of March 2024.
The company also supplies petroleum products like liquid petroleum gas, special boiling point solvents, mineral turpentine, high-speed diesel, kerosene, octane, and fuel gas to Bangladesh Petroleum Corporation.
Shahjibazar has a 90% owned subsidiary company named Petromax Refinery Limited. It also has an associate company named Midland Power Company Limited.
As of June 2024, the sponsors and directors of Shahjibazar Power Company hold 59.21% of the company's shares, with institutional investors holding 16.36%, and general investors possessing 24.43%.
At the end of Wednesday's trading session, the closing price of its shares stood at Tk65.50 each on the Dhaka Stock Exchange.
