12 fuel, power companies see profit rise
welve out of the country’s 22 listed fuel and power companies saw profits increase year-on-year in the first nine months of the ongoing fiscal year thanks to the rebounding of the economy. The United Power Generation & Distribution Company logged the highest, Tk 859 crore, followed by Summit Power, Power Grid Company of Bangladesh, and Titas Gas Transmission & Distribution Company, between July 2020 and March 2021, according to their financial reports. Explaining the increase, Abdul Wadud, managing director of Summit Power, the country’s largest independent power producer, highlighted that from early 2020 international prices of liquefied natural gas (LNG) had been increasing almost continuously. At present, Bangladesh has a power generation capacity of 22,023 megawatts (MW), over 50 per cent of which is of the private sector. Listed power companies have 35 plants, of which 21 are gas-based while the rest heavy fuel oil. Yesterday power generation peaked at 9,409 MW during the day and 11,276 MW at night, shows Bangladesh Power Development Board data. On the same date in 2019, it was 9,641 MW and 12,063 MW respectively. Market capitalisation of the fuel and power sector at Dhaka Stock Exchange (DSE) is now Tk 46,866 crore, which was 9.15 per cent of its total. It was Tk 42,775 crore last November. However, sales growth in the year is still low, between 3 per cent and 4 per cent, he said, adding that the growth was 15 to 16 per cent in previous years.
First green sukuk gets BSEC nod
Bangladesh’s first green sukuk has got the nod from the Bangladesh Securities and Exchange Commission (BSEC) to raise Tk 3,000 crore in funds. Of the Tk 3,000 crore, Tk 2,250 crore will be raised through private placement and the rest through initial public offering (IPO). Of the Tk 2,250 crore, Tk 750 crore will be raised from existing shareholders and Tk 1,500 crore from other investors. The face value of the sukuk is Tk 100 and it would require a minimum subscription of Tk 5,000. Its minimum periodic distribution rate is 9 per cent. Korotoa Solar is a joint venture between Beximco Power and the Jiangsu Zhongtian Technology Company. According to a 20-year agreement, the BPDB will buy electricity from Korotoa Solar’s plant at $0.14 per kilowatt hour. City Investments Capital Resources is the issue manager of the sukuk. In December last year, the government issued Tk 8,000 crore sukuk for a safe water supply project. At yesterday’s meeting, the BSEC also approved the IPO of Union Insurance Company to raise Tk 19.36 crore. The meeting also approved a draft of Shanta Fixed Income Fund, which primarily aims for Tk 10 crore. Of the fund, Tk 1 crore would come from Shanta Asset Management and rest would be open for general investors.
Global supermarkets pay 123pc higher dividend
Major global supermarkets have reported a 123 per cent spike in dividend payouts during the first eight months of Covid-19 pandemic as no restrictions were imposed on essential services which allowed such businesses to operate round the clock, reports The Express Tribune in Pakistan. According to a report released by Oxfam on Tuesday, dividend payouts by prominent international superstores rose to $22.3 billion during the first eight months of the pandemic against $10 billion in the corresponding period of previous year. Privately-owned supermarkets in Germany and the Netherlands also profited from extra sales during this period but due to lack of financial reporting by a majority of the firms, it was unclear who benefitted from the earnings. Market capitalisation of the listed supermarkets rose by $101 billion (between March and December 2020) compared to an increase of $75 billion in 2019.