Summit Power to spend Tk107cr to pay 10% dividend for FY24
The recommendation was made during the company’s board meeting held on Monday, as disclosed in a price-sensitive statement submitted to the Dhaka Stock Exchange (DSE) today
Summit Power has proposed a 10% cash dividend, amounting to Tk107 crore, for its shareholders for fiscal year 2023-24.
The recommendation was made during the company's board meeting held on Monday, as disclosed in a price-sensitive statement submitted to the Dhaka Stock Exchange (DSE) today (18 February).
The proposed dividend represents 32% of the company's total profit for the fiscal year.
Earlier, Summit Power had distributed a 10% cash dividend in FY23. The company's highest cash dividend payout was 35%, which was consistently declared for FY19, FY20, and FY21.
Keep updated, follow The Business Standard's Google news channel
The declared dividend is subject to approval at the annual general meeting (AGM), scheduled for 13 April. The record date for determining eligible shareholders has been set for 10 March.
In terms of distribution, sponsors and directors of Summit Power will receive 63.19% of the dividend, while institutional investors, foreign investors, and general investors will receive 18.53%, 3.65%, and 14.63%, respectively.
Despite the dividend announcement, Summit Power's share price remained steady at Tk16.30 today.
Meanwhile, the independent power producer reported a 51% surge in its consolidated net profit, which rose to Tk334 crore in the last fiscal year, up from the previous year.
By the end of FY24, the company's consolidated earnings per share stood at Tk3.13, marking an increase from Tk2.07 in the prior year.
In its price-sensitive statement, Summit Power attributed the 51% rise in consolidated profit primarily to a significant reduction in the heavy fuel oil (HFO) cost relative to HFO revenue compared to the previous year.
It said the improvement was largely driven by a lower impact from the sharp appreciation of the US dollar against the taka in FY24, which had previously inflated the taka cost of imports.
With this effect mitigated in the last fiscal year, the company's profitability saw a notable boost, it added.
Earlier, Summit Power said in a statement on 19 December that it owns 15 power plants with a total capacity of 976MW. Currently, 10 of these plants are operational, contributing a combined capacity of 808 MW.
The five plants in shutdown mode include the plants in Ashulia, Madhabdi and Chandina due to gas supply limitations, though these plants have a power purchase agreement till 21 November 2028 under a "no electricity, no payment" basis.
A 102 MW HFO-based plant in Madanganj, Narayanganj is in shutdown mode as the government has not placed any electricity demand since mid-August last year.
On the other hand, the 33MW Jangalia Power Plant has been in shutdown mode since its agreement with the government expired on 24 June last year, and it has yet to see any renewal of the PPA.
