Tk8,000 crore has been allocated for the power plant to be co-owned by the China Power Company
Meghna Petroleum Limited is going to build an 800MW power plant on its own land in Khulna in a joint venture with China Power Company.
Mir Saifullah-Al-Khaled, managing director of Meghna Petroleum, said, "Bangladesh Petroleum Corporation has provided approval in principle to Meghna Petroleum for building the power plant. The proposal has now been sent to the power ministry."
He added that the power plant will be LPG-based (liquid petroleum gas).
After receiving approval from the ministry, a power purchase agreement will be signed with the Bangladesh Power Development Board.
Tk8,000 crore has been allocated for development of the power plant. The China Power Company will own 50 percent of the plant.
Meghna Petroleum is also planning to build a commercial building on 22.50 kathas of land in Motijheel, Dhaka.
The company has also signed an agreement with Flora Limited, a software firm, to modernise its daily activities through automation.
The Meghna Petroleum Ltd is expecting a moderate revenue hike from royalty gained from LPG Autogas refuelling facilities as two top companies, BM Energy (BD) and Petromax LPG Limited, have joined the state-owned fuel company.
The company will earn a Tk0.50 royalty from each litre of liquid fuel to be sold at its franchisee refuelling stations without investing a single penny for this arrangement.
Meghna Petroleum has informed its shareholders about signing two agreements with BM Energy (BD) and Petromax LPG.
The agreements will allow these companies to provide Meghna-enlisted refuelling stations across the country with technical assistance for establishing and operating LPG refuelling facilities, along with LPG conversion workshops.
Meghna leading in oil sales
Currently, three oil companies (Padma Oil, Jamuna Oil, and Meghna Petroleum) of the government are selling petroleum products, including LPG, bitumen, and lubricants across the country. Meghna Petroleum is selling lubricants from BP, Lukoil, and Castrol brands.
These three companies sold a total of 63.79 lakh tonnes of petroleum products in the 2018-19 fiscal year. Meghna Petroleum alone sold 23.72 lakh tonnes of petroleum products during the period. The market share of the company was 39.39 percent, excluding that of jet fuel.
The sale of the company increased by 84 percent between 2014-15 to 2018-19 fiscal years. The net profit increased by 87 percent in this period.
In FY2018-19, the company earned a total of Tk669.57 crore. And the net profit was Tk379.91 crore.
Meghna Petroleum provided its shareholders a 150 percent cash dividend in the previous fiscal year. The company has delivered 100 percent or more in cash dividends to its shareholders in the last five years.
Meghna Petroleum was listed in the share market in 2007. Bangladesh Petroleum holds 58.67 percent of its share. Institutional investors hold 31.10 percent, and general investors hold 10.23 percent of its share.
On Wednesday, the Meghna Petroleum shares closed at Tk164.90. Over the last one year, the maximum price of its share was Tk244, while the minimum price reached Tk119.