Doreen Power’s subsidiary gets BPDB nod to start commercial operation
BPDB approved after running thorough reliability and dependable capacity tests of the power plant
The Bangladesh Power Development Board (BPDB) approved Chandpur Power Generation Limited - a subsidiary company of the Doreen Power Generations and Systems Limited - for starting its power plant's commercial operation.
Doreen Power disclosed the information on the Dhaka Stock Exchange (DSE) website on Sunday.
According to the disclosure, Chandpur Power already started the commercial operation of its 115 MW power plant on 11 February this year.
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But the company received the Commercial Operation Declaration (COD) from the BPDB on 6 April 2022.
Masudur Rahman Bhuiyan, company secretary at Doreen Power said, BPDB approved after running reliability and dependable capacity tests of the power plant thoroughly.
Earlier, Doreen Power decided to invest Tk680 crore to establish the power plant in Chandpur.
Of the amount, Tk520 crore came in the form of syndicated loans under the supervision of the lead arranger Dhaka Bank, and Tk160 crore came from Doreen Power's funds - out of which Tk85 crore came from its stock dividends and retained earnings from the accounting year 2018-19.
Doreen Power has a 99.9% stake in the Chandpur power plant.
On 18 January 2018, Chandpur Power signed a 15-year power purchase agreement with the BPDB.
As per the agreement, the power plant was scheduled to start commercial production on 16 July 2019.
But the production could not be started as per the schedule due to a delay in the import of necessary machinery for setting up the plant.
According to Doreen Power sources, once in commercial operation, the Chandpur power plant is expected to add Tk600-Tk700 crore to Doreen Power's annual revenue.
As a result, the company's annual profit will also increase by about Tk80 crore.
At present, Doreen Power supplies 176 MW of electricity to the national grid.
From July to December 2022, the company's consolidated revenue was Tk463.60 crore and net profit was Tk79.05 crore.
During the period, its consolidated earnings per share stood at Tk4.86 and net asset value per share at Tk47.69.
As of 28 February 2022, sponsors and directors jointly held 66.61%, institutions 19.17%, and the general public 14.22% shares in the company.
The last trading share price of the company at the DSE was Tk71 per share on Sunday.
