FE REPORT
Summit Power has reported a more than 37 per cent lower profit for the first half of FY25 to Tk 1.15 billion, compared to the same period of the previous year, as cost increased but demand fell.
Its consolidated earnings per share (EPS) fell to Tk 1.15 in H1, FY25 from Tk 1.71 in H1, FY24, according to the latest unaudited reports of the power producer.
In a disclosure, the company cited four reasons for the decline in profit.
The government has not renewed its power purchase agreement (PPA) with one of Summit's plants after expiry. Another plant was operational partially as no demand was placed by the national load dispatch centre. Three other power plants after the renewal of contracts with the government ran on the "No Electricity, No payment" basis, meaning they did not receive any capacity payment for the duration.
The fourth factor was higher income tax expenses. The tax expenditure soared to Tk 96.4 million in the six months through December last year from Tk 49.5 million in the same period of the previous year.
According to Summit's financial statement, revenue increased 11 per cent year-on-year during the period but cost of goods sold also escalated 18 per cent year-on-year.
Summit published its financial statements for Q1 and Q2 of FY25 together on Saturday.
It had been given an extended time for the submission of financial statements.
Meanwhile, the stock of Summit Power closed at Tk 15.70 per share on the Dhaka Stock Exchange (DSE) last Thursday.
Once a very promising company, Summit Power veered off its growth trajectory as the government changed its power purchase policy.
Summit Power secured a profit of Tk 3.34 billion in FY24, supported by lower import costs amid stable foreign exchange rates.
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