The Financial Express

EPS of most power cos up in Oct-Dec

Babul Barman | Published: February 06, 2020 11:31:23 | Updated: February 09, 2020 11:49:08

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Earnings per share (EPS) of most of the listed companies under 'fuel & power' sector showed better performance in October-December, 2019 quarter compared to the same quarter of the previous year.

Out of the 19 companies listed in the sector, EPS of 10 surged, seven saw fall, one company's loss increased while one is yet to publish reports, according to data from the Dhaka Stock Exchange (DSE).

EPS is the portion of a company's profit allocated to each outstanding share of common stock. In short, it serves as an indicator of a company's profitability.

EPS of Baraka Power, Shahjibazar Power, Power Grid, Linde Bangladesh, Summit Power, GBB Power, DESCO, Eastern Lubricants, MJL Bangladesh and Titas Gas increased during the period under review.

Baraka Power's consolidated EPS surged most, soaring 86 per cent to Tk 0.67 for October-December, 2019.

The consolidated EPS of Shahjibazar Power also rose 58 per cent to Tk 1.23 in October-December, 2019 compared to Tk 0.78 in the same quarter in the previous year.

The sate-run Power Grid Company's EPS also surged 52 per cent to Tk 1.50 in October-December, 2019.

On the other hand, Doreen Power, Intraco Refueling, Jamuna Oil, Khulna Power, Meghna Petroleum, Padma Oil and United Power declined in October-December, 2019 quarter.

The EPS of Jamuna Oil Company declined most, falling 29 per cent to Tk 4.77 in October-December, 2019 against Tk 6.71 in the same quarter in 2018.

United Power's consolidated EPS also dropped 19 per cent to Tk 2.95 for the October-December, 2019.

The United Power's consolidated EPS decreased due to an extra ordinary gain arising on the disposal of subsidiary during the corresponding period of the previous year and no such gain was visible during the period ended on December 31, 2019.

Ashuganj 53 MW power plant was fully operational in the previous period but during the current period the plant is not in operation as the contract period has expired. Renewal application approval is under process, said United Power.

CVO Petrochemical Refinery's loss increased during the period under review while Bangladesh Welding Electrodes is yet to disclose its quarterly reports.

The CVO Petrochemical's EPS stood Tk 0.51 in the negative in October-December, 2019 which was Tk 0.02, also in the negative in the same quarter last year.

The CVO Petrochemical noted that EPS was decreased due to incurring loss by the company during the period under review.

The power sector accounted for 14 per cent of the DSE's total market capitalisation. The sector's price-to-earnings (P/E) ratio stood at 10.30 as of Tuesday, third lowest after banking and engineering sector.

Market operators said fuel and power is the most lucrative sector in the stockmarket as the companies in the sector are performing better amid the government's renewed emphasis.

Finance Minister AHM Mustafa Kamal on Sunday said profit-making five state-owned energy and power companies are going to be listed in the capital market soon to help boost the lackluster equity market.

The companies are: Titas Gas, Power Grid, North-West Power Generation Company, Electricity Generation Company, Ashuganj Power Station Company, B R Powergen Ltd, and Gas Transmission Company.

The Titas Gas Ltd and Power Grid are already listed on the bourses. They will divest an additional 10 per cent shares in the stock markets.


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