Summit Power declares highest-ever 35 percent cash dividend

The Summit Power Limited has declared 35 percent cash dividend for its shareholders – highest since its enlistment in the capital market.

The declaration of the dividend, for the account year closed on June 30, 2019, came on Monday after the company took a decision to this effect in its board meeting on Sunday.

''For the first time, we have declared the maximum rate of dividend. It will be even higher in the future,'' said Swapon Kumar Pal, company secretary to the power company.

Summit Power, which got listed in the capital market in 2005, gave its lowest-ever 15 percent stock dividend to shareholders in 2013.

The company's net profit in the last accounting year stood at Tk511 crore after paying taxes, while it earned Tk4.78 from each share.

Of the total net profit, 73 percent has been said to be distributed among the shareholders, and the remaining 23 percent will be transferred to the firm's reserve as retained earnings.

October 17 has been fixed as the date of record of the Summit Power to determine which shareholders are eligible to receive the dividend.

The Annual general meeting of the company will be held on November 24.

In the last five years (2014-2019), the power company witnessed a 130-percent surge in its net profit. During the same period, its income from power sale also rose by 391 percent to about Tk3,000 crore.

In this regard, Swapon Kumar Pal said the other three concerns of the Summit Group merged with the Summit Power in 2016. Besides, two power plants with 149-megawatt and 300-megawatt capacities came into operation towards the end of 2018. As a result, the company's income has increased.

Currently, the power production capacity of the Summit Group is about 1,950 megawatts, making it the country's leading independent power producer in the private sector.

Of the total generation by the group, Summit Power alone produces about 1,000 megawatts. Fourteen power plants run under the firm. 

Summit Group has received five consecutive the best power plant awards from the government since 2013.

Meanwhile, Bangladesh Rural Electrification Board owes about Tk405 crore to the Summit Power. At present, a case in this regard lies with the High Court for disposal.