Profits of most of the listed fuel and power companies increased in the January-June period in 2015 compared to the same period a year ago as profit margins of large-cap companies of the sector increased significantly.
Of the total 18 companies listed with the Dhaka Stock Exchange (DSE) in fuel and power sector, that account for around 15.0 per cent of the DSE's total market capitalisation, eight disclosed their January-June consolidated profits (un-audited) having year-end of December.
Among them, consolidated profits of six companies rose while two registered negative growth in the January-June period in 2015 compared to the same period last year. Ten companies are yet to publish half-yearly financial reports as they consider June to be year-ending.
The companies which witnessed growth in profits are: Khulna Power Company, United Power Generation and Distribution Company, Summit Power, Summit Purbanchol Power Company, Bd. Welding Electrodes and GBB Power.
On the other hand, Linde Bangladesh and MJL Bangladesh witnessed less profit in the January-June period in 2015 compared to same period a year ago.
Market operators said the power sector grabbed the investors' attention as a good number of private companies showed better financial results for the investors during the last few years.
According to an analysis of LankaBangla Securities, earnings of the listed fuel and power sector increased to Tk 14,567.6 million from Tk 12,969.2 million, registering a 12.32 per cent growth.
"The large-cap companies have significant impact on the overall performance of the fuel and power sector," said the analysis.
Khulna Power Company's consolidated net profit after tax rose to Tk 1596.88 million with earning per share (EPS) of Tk 4.42 for January-June preiod, 2015 against Tk 270.96 million and Tk 0.75 for the same period last year.
"Capacity utilization of KPCL Unit-1 increased significantly from 34.2 per cent to 48 per cent, and number of units of electricity sold increased by 39.5 per cent, thus fostering both top and bottom line growth," said the analysis.
The profits of recently listed United Power Generation and Distribution Company rose to Tk 1658.66 million with EPS Tk 4.57 in the first half in 2015 against Tk 1168.68 million and Tk 3.22 respectively in the same period a year ago.
"Top line grew by more than 40 per cent and financial expenses decreased by around 50 per cent, which help to witness profits growth," said the LankaBangla analysis.
Summit Power's consolidated net profit after tax (excluding non controlling interest) from Jan'15-June'15 was Tk 1,563.43 million with consolidated EPS of Tk 2.02 as against Tk 1,203.95 million and Tk 1.67 respectively for the same period of the previous year.
"Other income from dividend increased by Tk 103 million, financial expenses decreased by Tk 153 million to Tk 66.9 million, and share of profit from Summit Meghnaghat Power Company was added, which help to profit growth," said the analysis.
Profit of Summit Purbanchol Power after tax from Jan'15-June'15 was Tk 430.17 million with EPS of Tk 2.83 as against Tk 344.23 million and Tk 2.26 respectively for the same period of the previous year.
BD Welding's profits stood at Tk 17.17 million with EPS Tk 0.40 in the first half in 2015 against Tk 7.30 million and Tk 0.17 respectively in the same period last year.
Profit of GBB Power rose to Tk 75.63 million with EPS Tk 0.78 in the January-June period in 2015 which was Tk 64.96 million and Tk 0.67 in the corresponding period last year.
Meanwhile, profit of Linde Bangladesh's declined to Tk 243.48 million and EPS Tk 16 in the first half in the current calendar year while it was Tk 294.95 million and Tk 19.38 in the same period a year ago.
"Operating expenses of Linde BD increased significantly (more than Tk 150 million), which affected net earnings," said the LankaBangla Securities.
Consolidated profit of MJL Bangladesh came down to Tk 471.70 million with EPS Tk 1.72 in the first half in 2015 against Tk 600.59 million and Tk 2.19 respectively in the same period last year.
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