Summit Power revenue drops 30% to Tk1,709cr in H1
Summit Power Limited, the country's largest independent power producer, reported a sharp decline in revenue in the first half of the current fiscal year as several of its power plants remained shut or operated below capacity.
According to the company's disclosure, consolidated revenue fell by 30% year-on-year to Tk1,709 crore in the July-December period of the 2025-56 fiscal year, down from Tk2,446 crore in the same period of the previous fiscal year.
Its consolidated net profit also declined, albeit at a slower pace, dropping 10% to Tk102 crore. The company's earnings per share stood at Tk0.96, compared to Tk1.07 a year earlier.
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In the second quarter alone, covering October to December, Summit Power posted consolidated revenue of Tk764 crore. However, its profitability weakened further during the quarter, with consolidated net profit falling 32% to Tk36.19 crore. The company's earnings per share for the quarter declined to Tk0.34 from Tk0.50 in the corresponding period last year.
The company attributed the significant fall in revenue mainly to the shutdown of a large portion of its generation assets. Summit Power said seven of its 15 power plants, with a combined capacity of 234 megawatts, remained shut during the period. The company's total installed generation capacity is 930.55 megawatts. The reduced operational footprint substantially lowered capacity payments and energy sales.
The disclosure also noted that following the expiry of power purchase agreements, four power plants operated only partially under a "no electricity, no payment" arrangement, while three plants remained completely non-operational throughout the year. As a result of these developments, the company recognised an impairment loss of Tk152 crore in FY25, reflecting the diminished recoverable value of certain assets.
Despite the challenging operating environment, Summit Power continued to maintain a profit, supported by plants that remained under active contracts. However, the overall financial performance highlights the growing pressure on private power producers amid changes in the power sector, contract expiries and shifting demand dynamics, according to the market insiders.
Summit Power's shares closed at Tk12.30 on the Dhaka Stock Exchange yesterday.
