Fixed income drives Padma, Jamuna Oil profits
During the July to December period of FY25, Jamuna Oil reported a 29.59% increase in profit, while Padma Oil saw a 50.60% rise compared to the same period in the previous fiscal year
Non-operating income, primarily from fixed deposit receipts (FDRs) in banks, has significantly boosted the profits of state-owned oil distributors Padma Oil Company and Jamuna Oil Company in the first half of the current fiscal year.
During the July to December period of FY25, Jamuna Oil reported a 29.59% increase in profit, while Padma Oil saw a 50.60% rise compared to the same period in the previous fiscal year (FY24), according to their financial statements.
Both state-owned firms hold a significant amount of FDRs in banks. Every year, they earn a substantial sum from non-operating income, which boosts their net profits and enables them to pay generous dividends.
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Padma Oil earns Tk249cr as non-operating income
Padma Oil Company posted a profit of Tk249.48 crore in the first half of FY25, with earnings per share (EPS) of Tk24.40, up from Tk162.42 crore in the corresponding period of FY24, according to its financial statement.
Meanwhile, its non-operating income grew by 45% to Tk249.21 crore, driven by rising interest rates on its FDRs, compared to Tk171.92 crore in the same period of the previous fiscal year.
Additionally, its operating income surged 86% to Tk80.58 crore, up from Tk43.27 crore in the corresponding period of the previous year.
Operating and non-operating income growth grew in the second quarter (October-December).
In the second quarter, its operating income grew 135% to Tk46.05 crore, and non-operating income by 57% to Tk119.16 crore, which was Tk19.53 crore and Tk75.47 crore in the same time of the previous fiscal year.
Jamuna Oil Company
In the first half of FY25, Jamuna Oil made a profit of Tk264.10 crore with EPS Tk23.92, up from Tk203.79 crore and EPS Tk18.46 in the same time of the previous fiscal year.
The oil distributor only published its profit as price-sensitive information but has yet to publish its full financial reports.
An official in the company said the net jumped basically riding on the income from FRDs interest.
In the second quarter (October-December), its profit grew to Tk140 crore, a 16% growth from Tk119.96 crore in the same time of the previous fiscal year.
