MJL Bangladesh to sell 20-year-old ship at $22.7m

MJL Bangladesh PLC, a listed company in the energy and power sector, has decided to sell one of its second-hand oil tankers, MT Omera Legacy, as part of its strategic asset management.

The decision was approved during the company's board of directors meeting held on Wednesday and was officially disclosed through the Dhaka Stock Exchange (DSE) today (6 March).

The MT Omera Legacy, a 20-year-old vessel with a displacement capacity of 1,07,000 tonnes, will be sold for $22.7 million (approximately Tk272.4 crore). A 3% commission will be deducted from the sale proceeds, resulting in MJL Bangladesh receiving Tk264.22 crore net from the transaction.

The announcement of the sale had a positive impact on the company's stock performance, with its share price rising by 1.48% to reach Tk96.20 on the trading day following the disclosure.

Earlier, on 21 September 2020, MJL Bangladesh, which operates as a lube oil seller under the Mobil brand, sold an older vessel for $8.8 million as part of its fleet optimisation strategy. This move was aimed at phasing out aging assets to make way for more modern and efficient vessels.

In a significant expansion initiative, since 2020, MJL Bangladesh has embarked on a fleet modernisation programme, deciding to procure five ocean-going oil tankers and one LPG tanker at an estimated total cost of $208.20 million.

According to the company's 2023-24 annual report, the oil tanker division plays a critical role in maintaining international trade links by facilitating the import of crude oil and other petroleum-related cargo. The vessels primarily operate on key trading routes in the Persian Gulf and the Arabian Sea. The company anticipates that the new acquisitions will significantly enhance its operational capacity and revenue generation in the coming years.

The sale of the MT Omera Legacy marks another step in MJL Bangladesh's strategic realignment, as it continues to strengthen its position in the global energy and shipping markets. The proceeds from the sale are expected to support the company's ongoing expansion and modernisation initiatives, further solidifying its foothold in the energy and power sector, according to the company insiders.

Half-yearly revenue rises 28%, profit 30%

According to its financial report, MJL Bangladesh reported a 28% jump in its consolidated net revenue and a 30% increase in net profit during the first half of the current fiscal year, ending in December 2024.

During the July-December period, its consolidated net revenue rose to Tk2,289.87 crore, while net profit increased to Tk217.43 crore, compared to Tk1,787.06 crore and Tk167.05 crore, respectively, in the same period of the previous fiscal year.

At the end of December, its earnings per share (EPS) stood at Tk6.66, up from Tk5.01 during the same period of the previous year.

Meanwhile, in the second quarter, from October to December, MJL Bangladesh's net revenue grew by 20% to Tk1,122.41 crore, and net profit increased by 36% to Tk104 crore, compared to Tk936.61 crore and Tk76.34 crore, respectively, in the previous year.

Regarding its profit growth, MJL Bangladesh, in its financial report, stated that the consolidated profit increased slightly due to the profitability of its subsidiaries and associate companies.

In FY24, the company reported a profit of Tk271 crore and paid its shareholders a 52% cash dividend.