Doreen Power profit plunges for foreign exchange losses

Doreen Power Generations and Systems Limited posted a 61% year-on-year profit decline in fiscal 2022-23 owing to foreign exchange losses.

In FY23, the company made a profit of Tk64.48 crore, which was Tk166.81 crore in the previous fiscal year.

Its earnings per share stood at Tk3.56, compared to Tk9.21 a year ago.

The company has recommended an 11% cash dividend for its shareholders for the last fiscal year.

Power companies open letters of credit for importing heavy-fuel oil, a fundamental raw material for power plants, at the prevailing dollar rate. However, they must settle the import bills at a higher rate due to the continued appreciation of the greenback, resulting in exchange losses for these companies.

Doreen Power Generations stated in its annual disclosure that the profit decreased due to a significant amount of exchange losses incurred in foreign currency transactions by subsidiary companies, stemming from the substantial devaluation of the taka against the dollar.

The net operating cash flow per share has increased remarkably because of a significant recovery of receivables from the Bangladesh Power Development Board and a decrease in payments to suppliers for efficient inventory management compared to last year.

To approve the dividends and audited financial report, the company will conduct the annual general meeting on 7 December this year. To this end, it has fixed 9 November as the record date.

In FY22, the company recommended 12% stock and 18% cash dividends for its shareholders.

The share price of the company closed at Tk61 on the Dhaka Stock Exchange on Sunday.