Summit Power profit drops by 37% in Jul-Dec

Summit Power Limited, a leading independent power producer, reported a 37% decline in its consolidated net profit for the July-December period of fiscal year 2024-25 compared to the same period in the previous fiscal year.

The company disclosed the information in its unaudited financial statement, which was approved during a board meeting held on 21 March, according to a company source.

As per the statement, the consolidated net profit for the first half of FY25 stood at Tk114.56 crore, down from Tk182.22 crore during the same period in the previous fiscal year.

The company attributed the decline in net profit primarily to the non-renewal of the power purchase agreement (PPA) for one of its power plants after its expiration. Additionally, another plant operated only for a partial period due to a lack of demand from the National Load Dispatch Centre.

Summit Power further explained that three other power plants, despite having their PPAs renewed, were operated on a "no electricity, no payment" basis, meaning they did not receive any capacity payments.

The company also noted that income tax expenses were higher during the first half of FY25, as more plants became subject to taxation following the expiration of their initial PPAs.

At the end of the December, its consolidated earnings per share stood at Tk1.07.

Meanwhile, its consolidated revenue grew by 11% to reach Tk2,460 crore in the first half of FY25, compared to the previous year at the same time.

Earlier, on 18 February, Summit Power proposed a 10% cash dividend, amounting to Tk107 crore, for its shareholders for FY24.

The declared dividend is subject to approval at the annual general meeting (AGM), scheduled for 13 April.

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.