Padma Oil declares record 140% cash dividend for FY24
Following the dividend declaration, its share price jumped 7.24% to Tk220.80 today on the Dhaka Stock Exchange (DSE)
Padma Oil, a state-run fuel distributor, has recommended a record-breaking 140% cash dividend for fiscal year 2023-24, offering shareholders Tk14 per share — the highest cash dividend payout in its history.
Following the dividend declaration, its share price jumped 7.24% to Tk220.80 today on the Dhaka Stock Exchange (DSE).
Earlier, it had paid a 135% cash dividend for its shareholders in FY23. Its highest payout was a 200% stock dividend that was declared for FY09.
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In its price-sensitive statement for the last fiscal year, Padma Oil reported a profit of Tk409 crore, reflecting a substantial 17% increase over the previous year.
By the end of FY24, its earnings per share (EPS) reached Tk41.59, up from Tk35.58 the previous year.
To approve the dividend and audited financial report, Padma Oil has scheduled the annual general meeting on 11 January 2025 and the record date on 3 December this year.
Profit grows 38% in Jul-Sep
Padma Oil achieved a 38% year-on-year increase in profits in the first quarter of the current fiscal year, largely fuelled by a sharp rise in non-operating income from interest earned on bank deposits.
Improved margins on fuel sales also contributed to this robust profit growth, according to the company's statement.
At the end of the quarter, the company registered a profit of Tk124 crore, up from Tk90.77 crore in July-September of FY23.
During the July-September quarter of FY24, its income from fixed deposits in banks increased by 35% to Tk130 crore.
Also, its product handling volume decreased by 7% to 5.97 lakh tonnes, from 6.43 lakh tonnes in the same time of the previous fiscal year.
Despite a decline in fuel handling volume, gross earnings from petroleum handling rose by 8% year-on-year to Tk76 crore, driven by improved margins on fuel sales.
In March this year, the government raised the margin on fuel sales by 60% for the three state-owned oil marketing companies — Jamuna Oil, Meghna Petroleum and Padma Oil.
The margin on diesel and kerosene sales was increased to Tk0.80 per litre from Tk0.50 commission fixed in 2016, while the octane and petrol margins have been raised to Tk0.90 from Tk0.60 per litre.
About a year ago, the Bangladesh Petroleum Corporation (BPC) proposed increasing the margins, citing a decline in the incomes of the state-run entities.
