Energypac Power incurs Tk250cr loss over three years

Energypac Power Generation PLC, listed on the stock exchanges in 2021, has reported a cumulative consolidated loss of Tk250 crore over the last three consecutive fiscal years.

According to the company's price-sensitive statement, Energypac posted the consolidated loss of Tk105 crore in the 2024-25 fiscal year, extending the losing streak for the third consecutive year.

Despite incurring a loss, the board of the company recommended a 2% cash dividend only for its general shareholders for the last fiscal year. 

Energypac Power had paid a 10% cash dividend for FY21 and FY22 each. While it paid a 5% cash dividend for FY23, it did not pay any dividend for FY24.

To approve the dividend and audited financial statement, the company has scheduled the annual general meeting for 15 December, while the record date is set for 4 December.

At the end of FY25, its consolidated loss per share stood at Tk5.50, according to its annual corporate declaration.

Regarding the losses, Energypac Power said that due to the current global economic conditions, marked by slower-than-expected recovery post-pandemic, geopolitical tensions such as the Russia-Ukraine conflict, interest rate hike, increasing fuel prices, and persistently high inflation, have significantly impacted the company's business performance and profitability.

"Additionally, the economic challenges specific to Bangladesh, including currency depreciation, supply chain disruptions, and rising import costs due to depleted foreign reserves have further adversely impacted, resulting in lower profit and higher borrowing. Thus the way, earnings per share has decreased significantly for the year," the company said.

On Thursday, its share price dropped by 6.37% to close at Tk14.70 on the Dhaka Stock Exchange (DSE).

On 25 September, the Dhaka bourse downgraded Energypac Power to the Z category from the B category as it failed to disburse at least 80% of its 5% declared cash dividend.

Upon distribution of the dividends on 29 September, the DSE placed the fuel and power sector firm in the B category.

Out of the total shares, sponsors and directors hold 54.14% shares of the company, while institutional investors have 16.51% and the remaining 29.35% is held by the public shareholders.

Energypac Power was established on 15 July 1995. It has become one of the leading power engineering companies of Bangladesh. 

The company engaged in trading of standby and base load generators, JAC brand automobiles, John Deere brand Agro machinery and equipment, JCB brand construction machinery and material handling equipment and operation of CNG stations along with aftermarket service. The company also sells LPG un