Meghna Petroleum recommends 200% cash dividend amid strong profit growth

Meghna Petroleum Limited, one of Bangladesh's leading state-owned oil marketing companies, has proposed a 200% cash dividend for shareholders for the fiscal year 2024–25, reflecting robust financial performance and improved profitability.

According to the FY25 financial results, the company's earnings per share (EPS) rose to Tk61.39, up from Tk50.11 a year earlier. In comparison, Meghna Petroleum paid a 170% cash dividend in the previous fiscal year, signalling a substantial increase in shareholder returns this year.

The board of directors approved the dividend recommendation at a meeting on Sunday. Following the announcement, the company's share price gained momentum, rising 1.42% to close at Tk213.80 on the Dhaka Stock Exchange (DSE) yesterday. The annual general meeting (AGM) to approve the dividend, along with audited financial statements and other agendas, is scheduled for 24 January 2026, with a record date of 10 December 2025 determining eligible shareholders.

Meghna Petroleum also released its first-quarter (July–September) FY2025 results, reporting a 12.24% year-on-year profit growth. Net profit rose to Tk155 crore from Tk138 crore in the same period last year, while EPS increased to Tk14.29 from Tk12.73. The growth was driven by higher sales margins per litre of petroleum products and increased non-operating income, particularly earnings from bank deposits and other financial returns.

During Q1, non-operating income surged to Tk178.44 crore, up from Tk143.27 crore a year ago, reflecting higher interest income and efficient treasury management. Net Operating Cash Flow Per Share (NOCFPS) also rose sharply, aided by a significant reduction in payments to suppliers, employees, and other operating parties totalling Tk457.16 crore, alongside an additional Tk37.85 crore from non-operating income. The combined effect strengthened cash flow per share, highlighting improved liquidity and operational efficiency.

Company officials attributed the performance gains to product-wise pricing strategies, cost optimisation, and favourable interest income from bank deposits.
Meghna Petroleum's core operations cover the procurement, storage, and marketing of petroleum products, bitumen, lubricants, LPG, and battery water across Bangladesh.