October 4, 2023, 2:53 am

Business Reporter

2021-02-08 20:58:43 BdST

Padma Oil signs business deal with two more LPG cos

The state-run listed company Padma Oil, as part of its business expansion, has signed agreements with two non-listed LPG companies - Bashundhara LP Gas and Petromax LPG.

Under the agreement, the company will sell LPG (liquefied petroleum gas) by establishing LPG (Autogas) refuelling station parallel to the sale of petroleum oil through the company’s registered filling stations across the country.

The Padma Oil Company will receive a royalty of Tk 0.50 against per liter sale of LPG, according to a disclosure posted on the Dhaka Stock Exchange (DSE) website on Monday.

In September 2020, Padma Oil also signed an agreement with three LPG companies -- Energypac Power Generation, Beximco LPG Unit-1 and Omera to sell LPG by establishing LPG (Auto gas) refuelling station parallel to the sale of petroleum oil through the company’s registered filling stations.

The Padma Oil, a statutory organisation under the power, energy and mineral resources ministry, has stepped forward to make LPG more available as a primary fuel source for vehicles in Bangladesh.

The move comes as part of the government’s ongoing efforts to increase LPG consumption in the country, where reserves of natural gas are depleting rapidly.

Each share of the Padma Oil, which was listed on the Dhaka bourse in 1976, closed at Tk 191.80 on Sunday. Its shares traded between Tk 155 and Tk 231.80 in the last year.

The company’s earnings per share (EPS) stood at Tk 4.80 for October-December 2020 as against Tk 5.86 for October-December 2019.

In six months, its EPS was Tk 11.20 for July-December 2020 as against Tk 13.35 for July-December 2019.

The company disbursed 125 percent cash dividend in 2020. In 2019, it paid 130 percent cash dividend.

The company’s paid-up capital is Tk 982.33 million and authorised capital is Tk 1.0 billion while the total number of securities is 98.23 million.

The government owns 50.35 percent stake in the company, while the sponsor-director own 2.06 percent, institutional investors own 30.37 percent, foreign investors 0.97 percent and the general public 16.25 percent as on December 31, 2020, the DSE data show.

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