Intraco expects yearly turnover to rise threefold after gas supply deal
A plant will be set up near Sundarban Gas Company to supply CNG to Gazipur and Bhaluka in 3-4 months
MOHAMMAD MUFAZZAL | Tuesday, 23 May 2023
Intraco Refueling Station is expected to see its annual turnover rise threefold as it begins to supply compressed natural gas (CNG) to industrial areas of Gazipur and Bhaluka in the next three to four months.
It has already inked a deal with state-run Sundarban Gas Company for a period of 10 years. As per the agreement, Intraco will get gas produced by Sundarban Gas Company in Bhola, will compress and then distribute it through its specialised vehicles.
To carry out the operation, Intraco will set up a plant on its own land near the state-run gas supplier.
The deal was made against the backdrop of an acute shortage of gas that consumers of TITAS Gas Transmission & Distribution Company have been facing in the industrial areas of Gazipur and Mymensingh districts.
Company secretary of Intraco Refueling Station G.M Salahuddin said Intraco would need an investment of around Tk 1.3 billion to implement the project.
In the first phase beginning in three to four months, 5 million cubic feet (MMCF) of gas will be compressed and distributed per day from Bhola to the industrial areas.
In the next one year, the company will supply an additional 20 MMCF gas per day from the same plant.
The company will calculate profit separately from the gas compression and distribution services.
"Our annual turnover is likely to be threefold of the existing value," said Mr Salahuddin, owing to the daily gas supply of 5 MMCF to Gazipur and Bhaluka.
The turnover will increase further after the beginning of the second phase in line with the agreement, he added.
Company officials said CNG is initially kept in 15 PSI (pounds per square inch). Intraco will compress gas into 4,000 PSI for the sake of transportation. The gas will again be converted into 15 PSI ahead of distribution.
Consumers will require degasification units that will also be supplied by Intraco Refueling Station.
PSI is the pressure that results when a one-pound force is applied to a unit area of 1 square inch.
The company reported a consolidated turnover of Tk 1.08 billion for FY22, up from Tk 955.86 million in the previous fiscal year.
Its consolidated net profit margin after tax rose to 9.6 per cent in FY22 from 7.67 per cent reported for the previous fiscal year.
Intraco Refueling Station bagged a consolidated net profit after tax of Tk 103.78 million in FY22, increased from Tk 73.35 million reported for a year earlier.
It has exhibited a steady growth in earnings for the last three fiscal years.
Its earnings per share (EPS) was Tk 0.55 in FY20, Tk 0.81 in FY21 and Tk 1.03 in FY22.
The company's consolidated net profit, however, declined marginally in January-March this year, compared to the same quarter of the previous year.
Meanwhile, the stock has been above the floor price for the last two years.
It rose to Tk 41.90 each share on May 17 from Tk 33.40 on May 3. The share price declined marginally in the last three consecutive sessions to close at Tk 38.90 on Monday on the premier bourse.