Intraco Refueling profit jumps 65% in July-Sep despite fuel crisis

Despite the ongoing fuel crisis in the country, CNG refueling company Intraco Refueling Station Limited's sales increased by 21% and its profit jumped by 65% in the first quarter of the fiscal 2022-23.

Meanwhile, stock market investors have increased investing in CNG refueling companies on the assumption that consumers will shift to CNG as oil price has risen.

As a result, Intraco Refueling Station's share price, on Thursday, reached Tk46.30 – a 128% increase compared to the price four months ago. Navana CNG's share price stood at Tk35.80 on the day, which was 35% higher than the price four months ago.

Intraco Refueling Station said in its financial report that movement of vehicles increased as the Covid-19 pandemic subsided and most of the educational institutions remained open during the first quarter of FY23. Consequently, CNG sales also increased, causing an increase in the company's turnover and profit.

It was not possible to contact any official of Intraco Refueling Station for comments regarding the matter.

Navana CNG has not released its financial report yet.

The closing time of CNG stations was increased from four hours to five hours – from 6 pm to 11 pm – due to the gas crisis in March this year, according to government directives.

Sources at Intraco Refueling Station said the company made a profit of Tk5 crore in the three months from July to September this year, which was Tk3.03 crore in the same period of the previous year.

The company's turnover was Tk39.52 crore during the period, which was Tk32.55 crore in the same period of the previous year.

Meanwhile, the company has recommended a 10% cash dividend to shareholders for FY22 as its business was good in that fiscal year too. The company's earnings per share (EPS) in the last fiscal year was Tk1.03, which was 27% higher compared to the previous fiscal year.

However, the sponsors and directors of the company will not get the dividend.

Meanwhile, Intraco Refueling has decided to invest in the production of LPG cylinders this year. For this, the company will build a factory in Cumilla. And for investment funds, it wants to issue a bond worth Tk50 crore.