Meghna Petroleum’s profit drops despite rebound

Meghna Petroleum Limited, which has already recovered from the pandemic's shocks, has reported a profit drop in the first of the current fiscal year due to a decline in non-operating income.

The company officials said that, after a big shock during the Covid-19 pandemic, the state-run entity has returned to business in full swing, with its sales and revenue returning almost to the pre-pandemic level.

But its non-operating income from interest has decreased, which has bitten into its profit during the July-December period of fiscal year 2020-2021.

The profit of Meghna Petroleum, which is engaged in the procurement, storage, and marketing of petroleum products, fell by 11%.

In the first six months of FY21, the company reported a profit of Tk132.4 crore and its earnings per share (EPS) stood at Tk12.24.

In the previous fiscal year, Meghna Petroleum's profit was Tk148.79 crore.

Company Secretary Reza Md Riazuddin told The Business Standard, "The business of the company has turned around. In the last six months, the sales and revenue have also been satisfactory."

"But as interest rates have decreased, the company's non-operating income from  investment in banks has declined, resulting in a drop in the company's total profit," he said.

As per the company's data, in the second quarter of the current fiscal year, it reported a profit of Tk61.68 crore and its EPS stood at Tk5.70. During the same quarter of the previous year, its profit was Tk66.98 crore and its EPS stood at Tk6.19.

In the July to September quarter, the company's profit was Tk70.77 crore and its EPS was Tk6.54. The profit was Tk81.81 crore and the EPS was Tk7.56 during the same period of the previous year.

Meghna Petroleum Limited was set up in 1977 and the assets and liabilities of the company were transferred to Bangladesh Petroleum Corporation (BPC) in 1976.  

The company was listed on both Dhaka Stock Exchange and Chittagong Stock Exchange in 2007.