Business Report :
Jamuna Oil Company reported a 29per cent year-on-year surge in profit, reaching a record Tk441.67 crore in the fiscal 2023-24, driven by substantial earnings from its fixed deposit receipts (FDRs) amid rising interest rates.
According to its financial statements, the state-owned fuel distributor has recommended a record-breaking 150per cent cash dividend for the year, offering shareholders Tk15 per share – the highest in its history.
In FY23, the company paid a 130per cent cash dividend, which was its highest at that time.
Despite the impressive financial performance, Jamuna Oil’s shares fell by 0.73per cent yesterday on the Dhaka Stock Exchange (DSE), closing at Tk190.10 each.
The company reported earnings per share (EPS) of Tk40, up from Tk30.87 in FY23. Its net asset value (NAV) also increased to Tk2,524.46 crore from Tk2,269.07 crore. However, its net operating cash flow per share declined significantly to Tk22.88 from Tk109.01.
Company Secretary Md Masudul Islam attributed the significant profit growth to higher non-operating income due to increased interest rates.
“The company has substantial short-term investments in FDRs across several banks. The recent hike in interest rates has boosted the company’s profitability,” he explained. Fuel sales margins also played a role in enhancing profitability.
In March, the government raised the fuel sales margin for the three state-owned oil marketing companies – Jamuna Oil, Meghna Petroleum, and Padma Oil. The diesel and kerosene sales margin increased to Tk0.80 per litre from Tk0.50, while the margin for octane and petrol rose to Tk0.90 from Tk0.60 per litre.
