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Investors to get no return from Emerald Oil for 3 years since FY17

FE REPORT | February 27, 2023 00:00:00

Emerald Oil Industries has recommended 'no dividend' for FY17, FY18, and FY19 when it remained shut because of serious 'irregularities'.

The company resumed its operation in January last year.

It has reported a loss of Tk 34.40 per share for FY17, which declined to to Tk 1.97 per share for FY18. The loss went further down to Tk 1.41 per share for FY19, according to a disclosure posted on the website of the Dhaka Stock Exchange (DSE).

The company was shut down in 2017. The last annual general meeting (AGM) that it held was in 2016.

An audit for FY20, FY21 and FY22 will begin soon, said the company secretary.

Asif Khan, chairman of EDGE Asset Management, said Emerald Oil incurred a huge loss in FY17 as it adjusted a substantial amount of receivables as bad and doubtful debts.

"The subsequent losses in FY18 and FY19 were normal."

The company said the record dates, time and venue of annual general meetings (AGM) for the aforesaid fiscal years will be notified later.

Meanwhile, the DSE made a query about the dividend declaration as Emerald Oil did not comply with the securities laws in submitting price sensitive information (PSI).

As per the existing rules, a listed company has to provide such information to the exchange within two hours after a decision is made.

Company secretary of Emerald Oil Industries, Sadia Afrin said they were unable to disseminate the information earlier as the decision was taken late on Thursday.

"It was a mistake. However, we have published the disclosures in newspapers."

Emerald Oil Industries, presently a 'Z' category company, was listed on the stock exchanges in 2014.

The company's sponsor-directors hold 38.26 per cent shares, institutes 5.83 per cent and general investors 55.91 per cent, according to the data available until the end of January.

The stock price closed at Tk 45.50 on June 26, at Tk 35.10 on July 28 and at Tk 36.40 on December 21, 2022.

Finally, the share price closed at Tk 28.50 each on Sunday. The company topped the chart of top 10 losers, having shed 10.66 per cent on the DSE.

Early October 2022, the company said it had branched out into Japan a month ago to execute its plan to export products to the island nation.

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