Eastern Lubricants' profit plunges 47pc in Oct-Dec
FE REPORT | Wednesday, 10 January 2024
Eastern Lubricants has shown a 47 per cent lower profit to Tk 4.74 million in the second quarter through December last year, compared to the same period a year earlier, as its revenue fell.
In a stock exchange filing on Tuesday, the government-owned blender of lubricating oils disclosed their un-audited profit for October-December, 2023.
In the six months through December, the company's profit dropped 16 per cent year-on-year to Tk 7.89 million.
Its cash flow, however, improved to Tk 20.66 per share from Tk 96 per share in the negative, as it paid less to the creditors.
Eastern Lubricants Blenders Limited mainly sells products to its three sister concerns -- Jamuna Oil, Meghna Petroleum, and Padma Oil.
In FY21, Eastern Lubricants experienced a profit jump of 860 per cent due to a decrease in oil price globally. The profit rose from Tk 5.4 million in FY20 to Tk 52 million in FY21.
But in the next financial year, its profit plunged 78 per cent to Tk 11.33 million again.
In FY21, the company disbursed 140 per cent cash and 20 per cent stock dividends, which were slashed to 40 per cent cash and 10 per cent stock dividends in FY22.
Eastern Lubricants started its production before the independence of Bangladesh in 1963. It was listed in the capital market in 1976.
Eastern Lubricants has a total of 1.44 million shares in the market, out of which 15.04 per cent is owned by sponsors and directors, 51 per cent by the government, 5.77 per cent by institutes and 28.10 percent by the public.