State-Run Oil Companies Report Double-Digit Profit Growth

three state-run oil companies in Bangladesh
Industry: Energy & Power, Oil & Petroleum, Stock Market
Company: Jamuna Oil Company Ltd, Meghna Petroleum Limited, Padma Oil Company Limited
Company Intelligence Tag: Business Insights

During the first nine months of the current fiscal year, three state-run oil companies in Bangladesh witnessed double-digit profit growth despite declining sales, attributed mainly to increased income from bank deposit interests. Jamuna Oil Company reported a 28% profit growth, Meghna Petroleum 18%, and Padma Oil Company 11%. The rise in profits was primarily due to higher bank interest incomes from fixed deposits. Operating incomes did not increase significantly as sales declined, with Jamuna Oil Company experiencing a 13% reduction in sales volume. Similarly, Meghna Petroleum and Padma Oil Company cited increased interest rates as a significant factor contributing to profit growth. While sales of petroleum products decreased, revenue slightly increased for Padma Oil Company. Overall, non-operating income from interests of deposits alongside an increase in sales margin contributed to the rise in earnings per share (EPS) for all three companies.

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