Private power producers have faced declining profits in FY23, primarily due to the depreciation of the taka against the US dollar. Three out of six electricity generators reported a decrease in profit, while two others recorded losses for the first time.
United Power Generation & Distribution Company, a major player, saw a 20% YoY profit drop and attributed it to the strengthening dollar, leading to reduced earnings per share. Khulna Power Company reported negative earnings for the first time, citing a plant sale at a lower price, government contract cancellations, and increased finance costs.
Other power producers, like Shahjibazar Power and Baraka Patenga Power, also saw reduced profits due to higher raw material costs from exchange rate fluctuations. In contrast, gas-based electricity producer GBB Power recorded a 9% profit increase, as it doesn’t rely on imported fuel. These developments reflect the impact of currency exchange rates on the power sector’s financial performance.
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