CVO Petrochemical's profit jumps 47pc on higher sales

CVO Petrochemical Refinery secured a 47 per cent year-on-year growth in profit to
Tk 26.68 million in the second quarter (Q2) of FY25, driven by higher sales.
The private petrochemical refinery's earnings per share (EPS) stood at Tk 0.96 for the quarter through December, up from Tk 0.66 for the same quarter the year before, according to a stock exchange filing on Tuesday.
Higher sales and reduced finance expenses contributed to the company's profit growth, said the company in its earnings notes.

The Chattogram-based company's sales revenue jumped 148 per cent year-on-year to Tk 398 million in October-December last year.
Its finance expenses during the quarter were reduced by 9 per cent as short-term loans declined to Tk 256 million by December from Tk 288 million in June last year.
Following the earnings disclosure, the stock rose 1.02 per cent to Tk 119.1 per share on Tuesday on the Dhaka Stock Exchange. Its stock soared almost 20 per cent in the week to Sunday.
The company's half-yearly profit rose 7 per cent to Tk 52 million while sales revenue jumped 115 per cent to Tk 655 million.

The net operating cash flow per share, a measure of a company's ability to generate cash from its operations, rose to Tk 2 per share in the quarter to December, up from Tk 0.78 a year ago.
The company explained that the cash flow had gone up for increased collection from customers than payment to suppliers and employees and operating expenses.
The net asset value, which refers to the excess of total assets over total liabilities, reached Tk 11.19 per share, up from Tk 10.31 in June last year, due to the growth in profit.
Its annual profit also had an impressive 404 per cent year-on-year growth to Tk 65 million in FY24, again on higher sales. The company's annual sales jumped 57 per cent year-on-year to Tk 705 million in FY24.
The company declared a 10 per cent cash dividend for its shareholders for FY24, increased from 5 per cent a year earlier.
Currently, it is engaged in the production and sale of Hydrocarbon Solvent (SBPS) with the use of new raw material Naphtha in the existing plant. The company's production capacity is 100 tonnes per day.
Raw material (Naphtha) is procured from Eastern Refinery, which is under Bangladesh Petroleum Corporation (BPC). Finished products are sold to Padma Oil, Jamuna Oil and Meghna Petroleum under Bangladesh Petroleum Corporation (BPC) as per contracts.
CVO Petrochemical Refinery started production with the new raw material of Naphtha in January 2022 and resumed its sales from September the same year. Its production has remained suspended for more than four months through December 2021 as BPC stopped supply of raw materials.
CVO Petrochemical also has facilities to produce and sell fuel, such as Motor Spirit (MS), High Speed Diesel (HSD) and Mineral Turpentine (MTT) from Natural Gas Condensate.
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