Intraco Refueling Station to close one subsidiary in March

Intraco Refueling Station had to shut down one of its 15 refueling stations as the land owner wants to build a high-rise building on the spot, according to a stock exchange filing on Sunday.

It had rented the property from Md. Earshadullah of Chandgaon, Chittagong and established one of the subsidiaries -- Intraco Automobiles Ltd -- back in 2013.

The contract with the landowner ends in the first week of March.

Company secretary of Intraco Refueling Station told The FE that, "The landowner wants to build a high rise building on the spot. So, we decided to move our investment from there. We will transfer all the investment of Intraco Automobiles to our Bhola non-pipe gas line unit."

With the move, the company loses a very important location of business -- Arakan Road of Chittagong on the Dhaka-Cox's Bazar highway.

Currently, Intraco Refueling has 5 subsidiaries. About 95 per cent of the shares of Intraco Automobiles are owned by the parent company -- Intraco Refueling.

Intraco Refueling receives dividends from Intraco Automobiles but soon it will stop getting dividends from the subsidiary.

After the latest disclosure, the share price of Intraco Refueling went up 7.04 per cent to Tk 22.80per share on the Dhaka bourse.

For FY24, it declared only 1 per cent cash dividend, which was 10 cash for FY23.

The company's profit was also cut by 32 per cent year-on-year to Tk 86.44 million in FY24.

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