Petroleum marketers’ profit rises on higher commission

State-run petroleum marketing companies posted higher earnings in the first three quarters of the current financial year (2022-23) thanks to the increased commission they get from the government for selling petroleum.

Of the companies, Jamuna Oil recorded a 99 per cent surge in earnings while Padma Oil and Meghna Petroleum, respectively the largest and second largest oil marketers on behalf of the government, posted 33 per cent and 31 per cent growth in profits.

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Noman Ahmed Taffader, company secretary of Padma Oil Company Ltd, said the petroleum marketing companies' commission for sales rose 20 per cent to Tk 0.6 per litre at the beginning of the financial year from Tk 0.5 earlier.

Last week, Padma Oil announced its earnings per share (EPS) grew to Tk 22.4 in the July-March period of fiscal 2022-23 from Tk 16.84 a year ago.

"Our non-operating income has increased too because of the high interest rate we got from deposits in banks," he added.

Meanwhile, Jamuna Oil said its earnings doubled to Tk 20.81 in the nine months ending with March this year from Tk 10.45 during the same period in fiscal 2021-22.

"The EPS increased due to an increase in other income," said the state oil marketer in its disclosure on the news board of the Dhaka Stock Exchange.

Meghna Petroleum posted EPS of Tk 24.95 in the first three quarters of the financial year compared to Tk 19.11 during the same period a year ago.

The three state oil marketing companies sold 69 lakh tonnes of petroleum on behalf of the Bangladesh Petroleum Corporation in fiscal 2021-22.

This year, two lubricant sellers -- Eastern Lubricants Blenders Ltd and MJL Bangladesh Ltd -- recorded higher profits as well.

Eastern Lubricants said its earnings surged more than three times to Tk 9.89 in the July-March period of financial 2022-23 from Tk 2.55 a year ago. It linked its EPS growth to increased revenue.

Similarly, MJL said its EPS rose to Tk 5.46 in the three quarters ending on March 31 from Tk 4.81 during the same period a year ago.