Summit Power resumes production of 3 plants

Highlights

• In the January to March quarter, revenue stood at Tk1,557 crore
• Solo-basis EPS stood at Tk0.48
• Net asset value per share at Tk37.68
• Latest share price: Tk34 each at the DSE

Summit Power Limited has resumed production of three power plants — Ashulia, Chandina, and Madhabdi.

The power generation started on 22 November after negotiations on the renewal of the power purchase agreement, tariff determination, and terms and conditions of Bangladesh Rural Electrification Board (BREB) with the power plants.

According to a company disclosure, the power purchase agreement for the three power plants came into effect on 22 November.

On 31 August this year, the three power plants expired with the Bangladesh Rural Electrification Board (BREB).

The BREB had allowed Summit Power to restart its two power plants that were shut down because of the expiry of the PPA from 7 February.

Earlier, the company informed that the 1st amendment to the PPAs, for the supply of electricity for a period of five years, was successfully executed on 8 November 2023 by BREB on "no electricity, no payment" (without any guaranteed offtake) basis.

In the January to March quarter, the company made revenue worth Tk1,557 crore, which was Tk1,292 crore compared to the same period of the previous year.

During the year, its earnings per share stood at Tk0.48 which was Tk0.83 in one year ago.

Its net asset value per share was Tk37.68 at the end of March this year.

The company could not complete its annual and first-quarter disclosure till now. Meanwhile, the company has taken time from the Bangladesh Securities and Exchange Commission up to 31 December 2023 for submission of reports.

The board of directors of the company recommended a 20% cash dividend for the year ending 30 June 2022. During the year, its consolidated earnings per share was Tk3.87.

Summit Power Limited was incorporated in Bangladesh in 1997 and listed on the bourses in 2005.

The company took a majority interest in Summit Purbanchol Power Company and Summit Uttaranchal Power Company in 2007 and Summit Narayanganj Power Limited in 2010. Those firms amalgamated with their parent company Summit Power Limited with effect from 31 December 2015.

As of 31 October, this year, the sponsors and directors hold 63.18%, institutional investors 18.67%, foreign investors 3.65%, and general investors 14.50% shares in Summit Power Limited.

At the end of Thursday's trading session, Summit Power share's closing price was Tk34 each at the Dhaka Stock Exchange.