Linde Bangladesh reports 17% profit decline

Linde Bangladesh, a multinational producer of industrial and medical gases, reported a 17% year-on-year decline in profit for the first quarter of 2025, citing lower sales and higher costs due to inadequate natural gas supply and power disruptions at its Rupganj plant.

According to its quarterly financials, during the January to March quarter, its profit declined to Tk8.05 crore, with earnings per share (EPS) falling to Tk5.29 — down from Tk9.72 crore and an EPS of Tk6.37 in the same period of the previous year.

Its revenue year-on-year declined by 6% to Tk55 crore in Q1, lower from Tk58.66 crore in Q1 2024.

However, its net asset value per share increased to Tk234.63, and net operating cash flow per share declined to Tk1.80, which was Tk229.34, and Tk3.22 respectively in the same time of the previous year.

The company said that, along with higher operating costs, net operating cash flow declined due to increased payments made during the current quarter.

The multinational had recommended a record-high 4,500% cash dividend for its shareholders in 2024. This includes a 400% final cash dividend and a 4,100% interim cash dividend, which was declared during the first seven months of the year.

The recommended dividend is yet to be approved by the general shareholders as its annual general meeting (AGM), scheduled on 29 May.

Basically, riding on the significant capital gains out of divestment of subsidiary Linde Industries Pvt Ltd, Linde Bangladesh recommended the highest interim dividend for its shareholders for the period from January to September of last year, according to its disclosures published on the stock exchanges' websites earlier.

Earlier, the multinational firm listed on the DSE and Chittagong Stock Exchange (CSE) sold its major revenue-generating segment, the welding electrodes business, to the ESAB Group.

However, the company did not disclose the selling value of its welding electrodes business.

Linde Bangladesh earned around Tk600 crore from the divestment of its subsidiary, which was engaged in the welding electrodes business, according to sources.

According to the DSE, sponsor-directors held a 60% stake in the company and 40% by the general shareholders, including the institutional and the general investors.

So, most of the dividend will be availed by the sponsor-directors of the company owing to their majority stake, and the dividend will be repatriated to the owner of Linde Bangladesh.