Padma Oil's profit up over 13pc, driven by non-operating income

The state-run Padma Oil experienced 13.6 per cent year-on-year growth in profit to Tk 1.42 billion in October-December (Q2) FY26, mainly supported by non-operating income derived from FDRs (fixed deposit receipts).

Its non-operating income was Tk 1.48 billion in the quarter to December last year, 24 per cent up from the same quarter of the previous year.

Ali Absar, company secretary of Padma Oil, said the company had seen such growth in non-operating income due to rising interest rates. Income from FDRs has remained stable, but interest on short-term deposits increased from 9.5 per cent to 10.5 per cent during the quarter to December.

Padma Oil continued on a growth trajectory when other state-run fuel companies, Jamuna Oil for example, are facing credit risks for having kept deposits with cash-strapped Islamic banks that are now undergoing merger.

Asked whether Padma Oil too holds FDRs in the merged banks, the company secretary said it had an insignificant amount of funds in those banks.

"That's why our non-operating income was not affected in the quarter to December," he said.

According to the company's financial statements, Padma Oil holds FDRs worth Tk 1.93 billion in the merged banks, while Jamuna Oil holds FDRs worth above Tk 10 billion in those banks.

Padma Oil's revenue income comes from the margin on petroleum trading at Tk 0.60 and Tk 0.70 per litre.

Its revenue declined marginally to Tk 0.83 billion in Q2 FY26 from Tk 0.86 billion in the same quarter of the previous year.

However, revenue income advanced 6.17 per cent year-on-year to Tk 1.72 billion in July-December (H1) FY26.

In the six-month period, Padma Oil experienced moderate growth of 22 per cent year-on-year in non-operating income to Tk 3.03 billion.

Subsequently, the company reported a net profit worth Tk 2.99 billion in H1 of FY26, 20 per cent up from the same period of the previous year.

Padma Oil, presently an 'A' category company, announced a 160 per cent cash dividend for FY25.

For the year, the company reported profits worth Tk 5.62 billion, 37.76 per cent up from the year before.

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