Earnings per share (EPS) of most listed power generation companies in private sector under 'fuel & power' sector showed better performance in first half (H1) of the current financial year despite the coronavirus pandemic.
Out of the 21 companies listed in the fuel & power sector on the Dhaka Stock Exchange (DSE), seven are engaged in power generation owned by private sector people.
Of the private sector power generation firms, five booked higher profits while two saw their profit declined marginally in July-December, 2020 compared to the same period a year earlier, according un-audited financial statements.
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.
Market analysts said the government's incentive package and single digit interest rate had a positive impact on the sector because most companies have big amounts of loans.
Fuel & power is the most lucrative sector in the stock market as the companies in the sector are performing better and the government is relying more on private sector companies for power generation, said a merchant banker.
Of the power generation companies, EPS of United Power, Doreen Power, Shahjibazar Power, GBB Power and Baraka Power increased during the period under review.
United Power's consolidated EPS surged most, soaring by 74 per cent to Tk 9.50 for July-December 2020 as against Tk 5.47 for July-December 2019.
The company has informed that they acquired 99 per cent shares of United Anwara Power (300MW) and United Jamalpur Power (115MW) with effect from 1st July, 2020.
"The jump in profit is due to the inclusion of this two power plants' earnings in the first half of the current fiscal year," said the company in a statement.
The consolidated EPS of Doreen Power rose to Tk 4.31 for July-December 2020 as against Tk 3.01 for July-December 2019, which was 43 per cent higher than the same period of the previous year.
Company officials said earnings have increased significantly due to the significant increase in revenue of its two subsidiaries.
A significant decrease in finance costs for reduction of the outstanding loan and the lower interest rates also helped boost the bottom line.
The consolidated EPS of Shahjibazar Power also jumped 42 per cent to Tk 3.09 in July-December, 2020 compared to Tk 2.18 in the same period in the previous year.
GBB Power's EPS also jumped 40 per cent to Tk 0.77 for July-December 2020 as against Tk 0.55 for July-December 2019.
The company also informed that EPS has increased due to quarterly turnover increased.
Baraka Power's consolidated EPS also surged, rising 19 per cent year-on-year to Tk 1.50 for July-December, 2020.
On the other hand, two power generation companies- Khulna Power and Summit Power saw their profit fall by 20 per cent and 1.06 per cent respectively in July-December, 2020.
Khulna Power's EPS fell to Tk 1.57 for July-December 2020 as against Tk 1.96 for July-December 2019.
Summit Power, the largest private sector listed power generation company, reported its EPS of Tk 2.81 for July-December 2020 as against Tk 2.84 for July-December 2019.
