Jamuna Oil posts highest profit, Titas Gas hits historic losses in H1
Meghna Petroleum has yet to release its financial statement, while Rupali Bank follows a calendar-year reporting schedule
Jamuna Oil registered the highest profit among the listed state-owned companies, while Titas Gas suffered historic losses in the first half of the fiscal 2024-25.
According to the Dhaka Stock Exchange (DSE), 16 of the 18 listed state-run firms have released their H1 financials, with nine reporting losses and seven posting profits.
Meghna Petroleum has yet to release its financial statement, while Rupali Bank follows a calendar-year reporting schedule.
Among the loss-makers, once-prominent firms like Titas Gas and the Investment Corporation of Bangladesh (ICB) posted significant losses. Others – Desco, Atlas Bangladesh, Eastern Cables, Zeal Bangla Sugar, Shyampur Sugar, Usmania Glass, and Renwick Jajneswar – have faced prolonged losses due to limited market competitiveness.
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Meanwhile, Jamuna Oil and Padma Oil posted record profits for the July-December period, primarily driven by higher interest income from bank deposits.
Other firms, including Bangladesh Submarine Cables, Bangladesh Shipping Corporation, Power Grid, National Tubes, and Eastern Lubricants, also performed well.
Titas Gas suffers Tk711 crore loss
Titas Gas reported a Tk711 crore loss in the first half of the current fiscal year, attributing the setback to rising system losses and the recognition of tax at source as minimum tax.
In its statement, Titas Gas reported a system loss of 10.63%, far exceeding the allowable limit of 2%. As a result, it had to bear a huge amount of purchase liability without receiving any revenue.
The company further explained that, previously, gas transmission and distribution companies were exempt from minimum tax requirements under the Tax Law 2023, which allowed Titas to claim refunds for excess tax deducted at source.
However, this provision was abolished during the current fiscal year. As a result, the company is now required to treat all tax deducted at source as a minimum tax liability if its actual tax obligation is lower.
Consequently, the company had to recognise the entire deducted amount as a current tax expense, which significantly contributed to its losses, the statement concluded. Despite incurring losses, Titas Gas was required to pay Tk314 crore as minimum tax, a sharp increase from just Tk21 crore in the same period last year.
Meanwhile, Titas Gas experienced a 2% decline in revenue, falling to Tk17,472 crore in the July-December period, driven by a significant reduction in gas supply to the power and industrial sectors.
In the first half, ICB, the state-owned non-bank financial institution tasked with supporting the capital market, reported a loss of Tk117.55 crore, translating to a loss per share of Tk1.36.
Desco also reported a loss, but it was significantly reduced, as the company posted a profit in the October to December quarter. The stability of the foreign currency exchange rate played a key role in this turnaround, according to the company's statement.
Jamuna Oil and Padma Oil post record profit
Non-operating income, primarily from fixed deposit receipts (FDRs) in banks, has significantly boosted the profits of state-owned oil distributors Padma Oil Company and Jamuna Oil Company in the first half of the current fiscal year.
During the period, Jamuna Oil reported a 30% increase in profit, reaching Tk264 crore, while Padma Oil saw a 51% rise, posting Tk249 crore, compared to the same period in the previous fiscal year, according to their financial statements.
Both state-owned firms hold significant amounts in FDRs with banks. Each year, they generate substantial non-operating income from these FDRs, which boosts their net profits and enables them to pay generous dividends.
According to their financial statements, Jamuna Oil holds a total of Tk5,795 crore in FDRs, earning Tk380 crore from this amount. Meanwhile, Padma Oil has Tk5,400 crore in FDRs, generating Tk249 crore in the first six months of FY25.
After incurring losses for two consecutive years, the Power Grid Company of Bangladesh turned around, posting a profit of Tk142 crore in the first half, largely driven by gains from foreign exchange.
According to its financial statement, the company recorded a foreign exchange gain of Tk338.42 crore, compared to Tk22.21 crore in the same period the previous year. However, in FY24, the company faced a foreign exchange loss of Tk1,098 crore.
