Energypac Power Generation has reported a loss of Tk 449 million in FY23, owing to the sell-off of its electricity generating subsidiary.
A major player in the supply, installation, commissioning, and maintenance of gas and diesel generators in Bangladesh, it had Energypac Power Venture Limited (EPVL) as its subsidiary.
Energypac Power Venture and its two subsidiaries were sold in FY23 at a loss.
As an independent power producer (IPP) company, Energypac Power Venture generates electricity and provides it to the national grid.
The mother company, Energypac Power Generation secured a profit of Tk 143 million from its usual business operations, but the selling of the subsidiary dragged it into the red.
The company said the sell-off of EPVL had a major impact on its consolidated income. That deteriorated the earnings per share too in FY23.
More businesses are leaving the power sector, as the government has moved away from the policy of providing capacity charges to power generators.
Though Energypac Power Generation, minus subsidiaries, gained a profit in FY23, the income was 34 per cent lower than the previous fiscal year.
The company blames it on a re-assessment of its inventory, bad debt provisions, and foreign currency transactional loss.
Its board of directors has recommended 5 per cent cash dividend for general shareholders for FY23.
The cash flow of Energypac Power Generation showed down in the year as the sales and credit recovery was low.
Meanwhile, the stock has been languishing at Tk 34.5 since July.
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