The net profit of United Power Generation and Distribution Company Limited has jumped by 74% in the first half of the current fiscal year riding on its acquisition of two power plants.
Earlier, the company bought a 99% stake of United Anwara Power Ltd, with 300MW capacity, and United Jamalpur Power Ltd, with 115MW capacity.
The plants went into operation in fiscal year 2019-20 and have proven their strength since.
The shareholders of United Power – which was listed on stock exchanges five years ago – benefitted from the revenues and profits of the plants for the next 14 years.
In the first half of this fiscal year, the company reported a consolidated net profit of Tk551 crore, and its earnings per share (EPS) stood at Tk9.50.
In the October-December quarter, its consolidated profit was Tk258 crore and EPS was Tk4.45.
United Power will get Tk148.50 crore as an interim cash dividend from United Jamalpur Power and Tk594 crore from United Energy.
The amount will be added to the United Power's balance sheet in the third quarter of the ongoing fiscal year.
The paid-up capital of United Power, which entered the capital market in 2015 using the book building method, is Tk579.69 crore.
Its share price has risen by 6% in the last several days, and the closing price of each share was Tk285.90 at the DSE on Thursday.
The company has paid 145% cash and 10% stock dividends to its shareholders for fiscal year 2019-20.
In the last fiscal year, its consolidated EPS was Tk11.26, which was Tk14.67 in the previous fiscal year.
"There was an extraordinary gain from the disposal of subsidiaries in fiscal year 2018-19. But no such gain occurred during the last fiscal year," said an official of the company.
"The 53MW power plant of Ashuganj was fully operational in the previous period but the plant has not been in operation during the current period, as the contract has expired. An application for its renewal is being processed."
In fiscal year 2018-19, the company reported a net profit of Tk770.46 crore. It paid 130% cash and 10% stock dividends to its shareholders.
Sponsors and directors jointly owned 90% of the company's shares till December last year. Institutional, foreign and general investors held 7.07%, 0.04% and 2.89% of the company's shares, respectively.