Most listed power generation companies in the private sector posted moderate earnings growth in July-September 2021, thanks to higher income from subsidiaries and reduced corporate tax rate.
Out of the 23 companies listed in the 'fuel & power' sector on the Dhaka Stock Exchange (DSE), nine are engaged in power generation owned by private sector people.
Eight companies declared their un-audited financial statements as of Monday. Of them, six booked modest profit growth, one dropped slightly while one incurred losses in July-September, 2021 compared to the same period a year earlier, according to statistics from the DSE.
Market insiders said the government's incentive packages, corporate tax rate cut and increased revenue earnings from their subsidiaries, continued to help private power generation companies to make good profits.
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, according to a merchant banker.
The earnings per share (EPS) of Shahjibazar Power Company, Doreen Power Generations & Systems, GBB Power, Energypac Power Generations, Baraka Patenga Power and Baraka Power increased during the period under review.
The consolidated EPS of United Power Generations & Distributions Company dropped slightly while Khulna Power Company incurred losses.
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.
Of the companies, consolidated EPS of Shahjibazar Power rose by 46.89 per cent to Tk 2.13 for July-September 2021, from Tk 1.45 for the same period a year earlier.
The company has attributed the EPS rise of considerable amount of profit of investment for using equity method and increase of subsidiary company's income.
Doreen Power's consolidated EPS also rose to Tk 2.83 for July-September 2021 as against Tk 2.01 for the same period a year ago.
The company informed that earnings have increased significantly due to significant increase in revenue and decrease in finance cost of the Group.
Doreen Power's revenue increased by 28.99 per cent while the finance cost decreased by 32.63 per cent during the period under review.
Baraka Pategna Power's consolidated EPS rose by 5.60 per cent to Tk 1.13 in July-September 2021, due to higher-income of its own business and its subsidiaries during the period.
Another power company of the Baraka Group, Baraka Power's consolidated EPS stood at Tk 0.84, an increase of 2.43 per cent, from Tk 0.82 in the same quarter last year.
Khulna Power incurred a loss of Tk 0.10 per share in July-September 2021 as against profit of Tk 0.91 per share in the same period last year as its two power plants --KPC 40MW Noapara Plant and KPC Unit II 115 MW plant shut down from May 29 and June 1, 2021 as power purchase agreement (PPA) expired.
The consolidated EPS of United Power, a concern of United Group dropped slightly by 1.0 per cent to Tk 5.0 for July-September, 2021.
