CVO Petrochemical Refinery posted an impressive 404 per cent year-on-year growth in profit, reaching Tk 65 million in FY24, driven by increased sales.
The private petrochemical refinery's earnings per share (EPS) soared to Tk 2.34 in FY24, up from Tk 0.46 the previous year, according to price-sensitive information published on Thursday.
According to a company official, higher sales, reduced finance expenses, and a sharp decline in the cost of sales contributed to the company's robust profit growth.
Based on the profit growth, the Chattogram-based company declared a 10 per cent cash dividend for its shareholders for the year ending June 2024.
However, CVO Petrochemical is yet to disclose its annual sales figures.
In the nine months through March, its net sales grew 64 per cent year-on-year to Tk 445 million, while cost of sales dropped substantially. The cost of sales, which includes all associated costs to produce products, stood at Tk 338 million in nine months through March this year, which was 76 per cent of total sales, significantly down from 91 per cent of total sales in the same period last year.
The net operating cash flow per share, a measure of a company's ability to generate cash from its operations, rose to Tk 2.77 per share in FY24, up from Tk 1.42 the previous year.
The company explained that the cash flow increased due mainly to 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 10.31 per share in FY24, up from Tk 8.27 in the previous year, due to higher profit.
The company set an annual general meeting on December 11 and the record date for entitlement of dividend is on October 31.
The company's stock price dropped 3.65 per cent to close at Tk 147.7 on Thursday. Before that, its stock soared 17 per cent in the past one month.
The private petrochemical refinery produces light fuel by fractionating naphtha -- a petroleum by-product.
Currently, the CVO 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 the Eastern Refinery, which is under Bangladesh Petroleum Corporation (BPC). Finished products are sold to Padma Oil Company under Bangladesh Petroleum Corporation (BPC) as per contract.
The CVO started production with the new raw material of Naphtha in January 2022 and resumed its sales from September the same year.
The company has facilities to produce and sell fuel like Motor Spirit (MS), High Speed Diesel (HSD) and Mineral Turpentine (MTT) from Natural Gas Condensate.
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