CVO Petrochemical’s profit surges by 63%, declares 20% dividends
The stock dividend, which is subject to approval from the Bangladesh Securities and Exchange Commission (BSEC), is intended to meet regulatory requirements to raise capital to maintain a minimum paid-up capital of Tk30 crore.
CVO Petrochemical Refinery PLC, a fuel and power sector firm, has reported a 63% surge in profit for the 2024-25 fiscal year, according to the disclosures published on the stock exchanges today (28 September).
Based on the profit growth, the firm has doubled its dividend payout, recommending 20% dividends – 11% in cash and 9% in stock – the highest since FY16, according to available DSE data.
The stock dividend, which is subject to approval from the Bangladesh Securities and Exchange Commission (BSEC), is intended to meet regulatory requirements to raise capital to maintain a minimum paid-up capital of Tk30 crore.
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Following the annual corporate declaration, CVO's share price rose by 2.09% to Tk170.7 each on the DSE yesterday.
According to the disclosure, CVO Petrochemical reported an earnings per share (EPS) of Tk3.82, with total profit standing at Tk10.61 crore in FY25.
A year earlier, in FY24, its profit was Tk6.50 crore with an EPS of Tk2.34, when it paid a 10% cash dividend to shareholders.
The annual general meeting (AGM) has been scheduled to be held on 10 December, and to identify its shareholders, the record date has been fixed for 30 October.
CVO Petrochemical, originally a vegetable oil refiner struggling to compete with imports, successfully reinvented itself as a petrochemical refinery.
However, the company faced several production challenges in 2021, primarily due to product quality issues, which it attributed to the inadequate standards of local raw materials.
Due to this, it faced a production halt for 14 months till September 2022, and that is why it did not earn any revenue and incurred a loss.
To support the growth of local petroleum refining, the government decided to supply imported condensate to domestic refineries, allowing CVO Petrochemical to regain momentum in its operations.
In September 2022, CVO Petrochemical became the first company in the country to sign a contract with the Bangladesh Petroleum Corporation (BPC).
Under the agreement, it sources naphtha from BPC-owned Eastern Refinery to produce high-quality solvents at its plant. The company also secured a three-year agreement to sell its products to the BPC at a fixed margin.
