Staff Reporter :
Titas Gas Transmission and Distribution Company’s revenue saw a massive 82% jump year-on-year in the first half of the ongoing fiscal year 2023-24 (FY24) owing to gas price hikes.
The company posted a revenue of Tk17,184 crore during the July 2023 to December 2023, compared to Tk9,842 crore in the same period in FY23,according to Titas Gas’s half-yearly financial report.
In January 2023, the Energy and Mineral Resources Division of the Ministry of Power, Energy and Mineral Resources set new tariffs to adjust government subsidies in the sectors. The new tariff has been in effect since February last year.
As per the new rates, power-generating companies, and large and medium industries are now paying 179%, 150%, and 155% higher tariffs respectively than the previous rates.
While small, cottage and other industries are paying 178% more for the use of gas.
However, despite witnessing notable revenue growth, its net profit declined by 62% to Tk46.82 crore.
The company posted Tk124.90 crore profit in the first half of FY23.
Its profit fell as the government calculated revenue without considering system loss.
Earlier, Titas enjoyed a 2% rebate on total revenue as system loss, but now the government is counting the system loss on an actual basis. This has resulted in its gross profit drop by 44% to Tk170 crore in the July to December of FY24.