Most listed state companies incur loss in 9 months

A majority of listed state-owned enterprises (SOEs) incurred combined losses totalling Tk1,401 crore in the first nine months of the current fiscal year, with Titas Gas alone accounting for Tk947 crore due to tax-related complications, underscoring persistent inefficiencies.

In contrast, six enterprises posted a combined profit of Tk1,358 crore, primarily driven by cash-rich fuel suppliers generating significant earnings from non-operating income.

Of the total 19 government-owned listed firms, 16 have published their nine-month financials as of March. Three are yet to release their reports, while one is scheduled to publish today.

According to data available on their websites, 10 firms incurred losses while six posted profits.

Among the profitable ones, four have recorded a profit growth ranging from 37% to 240%, while two saw declines between 10% and 16%.

The major loss-making firms are—Titas Gas, Investment Corporation of Bangladesh (ICB), Dhaka Electric Supply Company (Desco) and Power Grid.

On the other hand, Jamuna Oil, Meghna Petroleum, Padma Oil, Submarine Cables, Eastern Lubricants and National Tubes are the profit-making ones.

Data showed that the combined losses of loss-making firms in the July to March period increased by Tk832 crore year-on-year while profit by the six firms surged by Tk353 crore.

An investment banker, speaking on condition of anonymity, told the Business Standard, "Some cash-rich firms are generating hefty profits from non-operating income, but their operational efficiency remains largely inadequate."

"Others fail to make a profit due to poor asset management and a lack of competitiveness with the private sector," he added.

Titas Gas incurs Tk974cr losses 

Titas Gas Transmission and Distribution incurred the highest Tk947.50 crore loss among the state-owned firms in the July–March period of FY25. 

The company attributed the loss to a 10.13% system loss — well above the 2% allowable limit — forcing it to bear purchase costs without corresponding revenue.

Additionally, changes in the Tax Law significantly impacted earnings.

Previously, gas transmission and distribution companies were exempt from minimum tax, allowing Titas to claim refunds on excess tax deducted at source.

However, the Finance Act 2024 revoked this exemption, leading the company to treat the entire deducted amount as a current tax expense.

A company official, requesting anonymity, said the tax policy shift was a key factor behind the loss and warned that the firm's financial health would weaken further if the provision is not revised.

Higher provisioning hits ICB

Despite growth in its core income sources — such as dividends, capital gains, fees, commissions, and service charges — the Investment Corporation of Bangladesh (ICB) incurred a loss of Tk279.08 crore in the first nine months of the fiscal year, mainly due to increased provisioning against loans, advances, and investments.

This loss rose from Tk267 crore recorded in the same period of the previous fiscal year.

During the period, ICB's operating income stood at Tk39.17 crore. After deducting operating expenses, its total operating loss amounted to Tk74 crore.

The corporation had to set aside Tk125 crore in provisions—more than double the Tk60.59 crore it allocated during the same period last year.

Desco's loss narrows 

The net loss of Desco narrowed by around 71% to Tk78.55 crore with a loss per share of Tk1.98 mainly driven by higher distribution revenue, according to its unaudited financial statement. 

Its report showed that net turnover surged 16% to Tk5,410.58 crore during the period. 

In the July–March period of the previous fiscal year, Desco had incurred a loss of Tk270.81 crore due to higher operating expenses, foreign exchange losses, and debt interest.

Finance cost woes for Power Grid

Power Grid Bangladesh has incurred a loss of Tk31 crore in Q3, reversing its substantial second-quarter profit due to a sharp rise in finance costs and mounting foreign currency losses.

After incurring over Tk200 crore in losses in the first quarter (July–September) of FY25, the company recovered in the second quarter with a Tk398 crore profit.

By the end of the first half of the current fiscal year, which ended in December, it returned to a profit of Tk141 crore.

However, in the third quarter (January–March), Power Grid posted a Tk185 crore loss with per-share loss of Tk2.03, dragging it back into negative territory.

As a result, after adjusting for earlier profits, the company ended the first nine months of the fiscal year with a net loss of Tk31 crore while its revenue during the period grew by 13% to Tk2,218 crore.

During the July–March period, Power Grid's finance expenses nearly doubled to Tk1,183 crore — comprising Tk539 crore in interest expenses and Tk644 crore in foreign currency fluctuation losses.

In the same period of the previous fiscal year, total finance expenses stood at Tk614.83 crore.

The other three loss-making firms Zeal Bangla Sugar Mills, Shympur Sugar Mills and Renwick Jajneswar Co Ltd under the Bangladesh Sugar and Food Industries Corporation (BSFIC) incurred a loss of Tk24.58 crore, Tk19.14 crore and Tk3.12 crore respectively. 

The firms have been incurring losses for years and due to excessive losses, they usually fail to pay any dividends to its shareholders for years. 

FDRs fuel Padma, Jamuna Oil and Meghna Petroleum hefty profits

Despite slight growth in core business operations, three state-owned fuel suppliers – Padma Oil, Jamuna Oil, and Meghna Petroleum – witnessed significant growth in their profit in nine months of 2024-25. 

During the July to March period, Jamuna Oil reported a 38% increase in profit, Padma Oil 61% and Meghna Petroleum by 40% compared to the same time of the previous fiscal year. 

With such substantial growth, Jamuna Oil's profit surpassed Tk400 crore mark for the first time in the nine months to Tk404.69 crore, while Padma Oil to Tk394.85 crore and Meghna Petroleum to Tk411.83 crore.

Officials of the firms attributed this significant increase to non-operating incomes, primarily from fixed deposit receipts (FDRs) in banks. 

The cash-rich firms have significant amounts of FDRs in banks that are generating substantial gain.

The officials said, as interest rates increased in the banking industry, the earnings from non-operating income significantly jumped as well as income from operating activities surged.

Meanwhile, Bangladesh Submarine Cables reports Tk140 crore profit in the first nine months of the current fiscal year, which is a 16.76% decline over the same time of the previous fiscal year.