Summit Power suffers 46% drop in profit

Summit Power Ltd (SPL) has suffered a 46 percent fall in profit in 2022-23 financial year.

The private power producer made a profit of Tk 221 crore in the year ended on June 2023, which was Tk 413.24 crore in the same period previous year, according to company's audited financial statement.

As a result, the company's earnings per share slumped to Tk 2.07, which was Tk 3.87 in fiscal year 2021-22.

SPL, a subsidiary of Singapore-based holding company Summit Power International, owns and operates 15 power plants at different locations in Bangladesh with a total installed capacity of 975.96 megawatts.

Summit cited global scenarios affected the US dollar exchange rate and forex reserves, which ultimately dented the company's bottom line.

"Fuel cost exceeded the fuel revenue due to the adverse exchange rate. Also, net finance expense increased due to excessive delays in payment of bills through local banks," Summit said in the statement.

The private power producer also attributed foreign exchange loss from quarterly servicing of foreign currency project financing as a reason for its profit fall.

The company recommended a 10 percent cash dividend for its shareholders, emphasising that it has not been declared out of the capital reserve, revaluation reserve account or through any unrealised gain.

Share price of the company rose 0.36 percent from the previous day to end at Tk 27.5 on the Dhaka Stock Exchange yesterday.