The state-run listed firm -- Jamuna Oil Company -- has signed an agreement with Beximco LPG (Unit-1) as part of its business expansion.
Under the agreement, Beximco LPG (Unit-1) will sell LPG (auto-gas) by setting up auto-gas pumps at the registered filling stations of Jamuna oil across the country.
The Januna Oil Company will receive royalty/commission of Tk 0.50 against per litre sale of LPG (auto-gas) as per the agreement, the company said in a filing with the Dhaka Stock Exchange (DSE) on Thursday.
The signing ceremony was held at Chottogram office of Jamuna Oil Company on Wednesday, officials said.
Liquefied petroleum gas or LPG is called auto-gas when it is used for motor vehicles as fuel. The use of LPG as auto fuel has been growing in Bangladesh due to its cost competitiveness compared to octane, petrol, and diesel.
LPG is already a highly popular and admired fuel solution across the world for being energy-efficient and environment-friendly.
The Jamuna Oil Company, a statutory organisation under the Ministry of Power, Energy and Mineral Resources, has stepped forward to make LPG more available as a primary fuel source for vehicles in Bangladesh.
The move comes as part of the government's ongoing efforts to increase LPG consumption in the country, where reserves of natural gas are depleting rapidly.
Currently, Jamuna Oil has a network of 750 filling stations while Beximco LPG was granted 500 franchise licences for Auto LPG stations and 25 licences for conversion workshops by the Ministry of Energy and Mineral Resources in 2016, sources said.
Earlier, Jamuna Oil signed similar business deals with some LPG companies like Omera Gas One, BM Energy and Delta LPG.
On Thursday, each share of the Jamuna Oil, listed on the Dhaka bourse in 2007, closed at Tk 184, gaining 1.10 per cent over the previous day.
Its share traded between Tk 146 and Tk 188 in the last one year.
The company's earnings per share (EPS) stood at Tk 12.65 in nine months for July 2020 to March 2021, which was Tk 13.14 in the same period of the previous year.
The company disbursed a 120 per cent cash dividend in 2020. In 2019, it provided a 130 per cent cash dividend.
The company's paid-up capital is Tk 1.10 billion and authorised capital is Tk 3.0 billion while the total number of securities is 110.42 million.
The government owns 60.08 per cent stake in the company, while the sponsor-directors own 2.90 per cent, the institutional investors 26.80 per cent, foreign investors 0.49 per cent and the general public 9.73 per cent as on July 31, 2021, the DSE data show.
babulfexpress@gmail.com