United Power's profit drops 22% due to high production costs
The United Power Generation and Distribution Company saw a 22% year-on-year profit decrease in the third quarter of the current fiscal year due to increasing costs of production.
In the January to March quarter, its consolidated net profit came down to Tk248.11 crore compared to Tk318.83 crore in the same period of the previous fiscal year.
The consolidated earnings per share stood at Tk4.28, down from Tk5.50 a year ago.
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From July to March period, its consolidated earnings per share stood at Tk14.13, down from Tk17.34 a year ago.
Its net asset value per share was Tk53.51 as of 31 March 2023.
According to Md Mujibul Islam Patwary, an assistant general manager of the company, the import cost of Heavy Fuel Oil (HFO), which is used in their power plants as fuel, rose significantly due to rising dollar rates.
Besides, also the cost of production significantly rose with the increase in gas price for IPP customers, he added.
As of 31 March 2023, sponsors and directors held 90% of the company's shares, and institutional, foreign, and general investors owned 7.35%, 0.02%, and 2.63%, respectively.
The last share trading price of the company was Tk233.70 on the Dhaka Stock Exchange on Tuesday (2 May).
