Padma oil profit rises 28% on non-operating income

Padma Oil Company Limited, a state-owned entity, registered a 28% year-on-year growth in profits during the first quarter of the current fiscal year, primarily driven by a significant rise in non-operating income stemming from interest earned on bank deposits. During the July-September quarter of FY24, its income from fixed deposits in banks increased by 26.97% to Tk96.45 crore. At the end of the quarter, the company registered a profit of Tk90.78 crore, up from Tk70.75 crore in July-September of FY23.

Also, its product handling volume decreased by 5% to 643,188 tonnes, from 679,365 tonnes in the same time of the previous fiscal year.In a statement, the company said its earnings per share increased by Tk2.04 due to increased non-operating income against bank deposits (FDR and SND). The operating cash flow has been increased due to an increase in inventories. According to the company statement, its other income stood at Tk21 crore, which was Tk14.35 crore in the same period of the previous year.

Its net earnings on petroleum trading stood at Tk69.62 crore, which was Tk69.75 crore in the same period the previous year. 135% cash dividend declared
The company has recommended a 135% cash dividend for fiscal 2022-23. That means its shareholders will get Tk13.50 for each share. The company recommended a 125% cash dividend for their shareholders in the previous fiscal year. According to its financials, in FY23, Padma Oil logged a profit of Tk349.58 crore, which was Tk240.38 crore in FY22. Its earnings per share (EPS) increased to Tk35.58, up from Tk24.47 in FY22.

The company's annual general meeting (AGM) will be held on 6 January 2024 and to identify shareholders, 28 December this year has been fixed as the record date. On Wednesday, the price of each share of the company closed at Tk209.20 on the Dhaka stock exchange.