Petroleum and lubricant distributors in Bangladesh saw a significant surge in profits in FY24, driven largely by increased interest income amid rising interest rates, despite a decline in petroleum consumption. Eastern Lubricants reported a 25.34% year-on-year rise in income to Tk 0.036 billion for the year ending June 2024, while Meghna Petroleum’s profit surged 22.65% to Tk 5.42 billion. Padma Oil posted a 16.9% increase to Tk 4.08 billion. However, operating profits fell due to reduced petroleum consumption, with Meghna Petroleum’s operating profit declining by 17.33% to Tk 0.67 billion.
In Q1 FY25, Meghna Petroleum reported a 51% profit increase, reaching Tk 1.378 billion. Eastern Lubricants saw a 211% jump in profit, earning Tk 0.009 billion. Padma Oil posted a 37% rise in Q1 FY25 profits. Despite the rise in dividends, stock valuations varied, with Eastern Lubricants’ P/E ratio indicating overvaluation. The government retains a majority stake in these companies.
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