State-run oil companies see double-digit profit growth

The three state-run oil companies in Bangladesh booked double-digit growth in profits during the first nine months of the current fiscal year even after a decline in sales mainly due to a rise in income from bank deposit interests.

Jamuna Oil Company saw a year-on-year profit growth of 28 percent, Meghna Petroleum 18 percent and Padma Oil Company 11 percent.

"The profits rose mainly due to higher bank interest incomes from fixed deposits," said Md Masudul Islam, company secretary of Jamuna Oil Company.

It made a profit of Tk 293.67 crore in July-March period of FY2024 whereas it was Tk 229.80 crore previously, according to financial reports.

Earnings per share (EPS) amounted to Tk 26.60 in the nine-month period this fiscal year and Tk 20.81 a year ago.

However, operating income of Jamuna Oil Company did not increase as sales reduced by 13 percent to 12.36 lakh tonnes from 13.99 lakh tonnes, said Islam.

Echoing him, Reza Md Riazuddin, company secretary of Meghna Petroleum, said the profits were mainly generated from bank deposit interests as the interest rate has increased substantially since January.

For Meghna Petroleum, the profit increased by 18 percent year-on-year to Tk 294.55 crore whereas it was previously Tk 270 crore.

Its EPS stood at Tk 27.22 and Tk 24.95 respectively whereas non-operating income was Tk 315.64 crore in the July-March period of this fiscal year and Tk 273.23 crore last year.

According to Riazuddin, the profit from operating income was very insignificant.

He said their sales of petroleum products came down to Tk 162.43 crore from Tk 168.54 crore in the same period of the previous year.

Meanwhile, sale of petroleum products by Padma Oil came down to 19.07 lakh tonnes from 20.04 lakh tonnes.

However, its revenue slightly increased to Tk 204 crore from Tk 197 crore.

It logged a 11 percent year-on-year rise in profit to Tk 244 crore from Tk 220 crore.

Non-operating income reached Tk 272 crore whereas previously it was Tk 244 crore.

The EPS was Tk 24.88 and Tk 22.40 respectively.

The EPS has increased due to a rise in non-operating income from interests of deposits alongside an increase in the sales margin, said Padma Oil in a statement.