Titas Gas posts Tk212 crore loss in Q3
The loss in the same period of the previous fiscal year was Tk117 crore. At the end of the first nine months of FY24, its total loss stood at Tk165 crore
Titas Gas Transmission and Distribution Company Ltd, a publicly traded state-owned firm, reported a net loss of Tk212 crore in the January to March of the 2023-24 fiscal.
The loss in the same period of the previous fiscal year was Tk117 crore. At the end of the first nine months of FY24, its total loss stood at Tk165 crore.
However, the company reported a notable growth of 20% in revenue, reaching Tk8,727 crore, owing to the increase of gas prices hike last year.
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In January 2023, the government hiked gas prices for power, industries, and commercial (hotel and restaurant) sectors up to 179%.
Its shares closed at Tk22.90 each on Tuesday (30 April), dropping 2.97% from the previous session at the Dhaka Stock Exchange.
The company, in a statement, said that due to the increase in system losses and the rise in prices of gas to end-users, there has been a significant increase in the cost of sales. As a result, there is a significant deviation in EPS.
However, a few months ago, Arpana Islam, general manager (finance) at Titas Gas told The Business Standard that the profit declined due to two factors – the government's decision to withdraw the 2% systems loss facility and the increase in operating expenses.
"Titas Gas previously enjoyed a 2% systems loss facility over revenue, but with its withdrawal, systems loss is now accounted for on an actual basis, leading to a decline in profit," she said.
In the January to March quarter, its negative earnings per share stood at Tk2.14.
