Dhaka,  Sunday
21 July 2024

BPDB renews Shahjibazar Power agreement for 5yrs

Staff Reporter, Dhaka 

Published: 08:15, 11 July 2024

BPDB renews Shahjibazar Power agreement for 5yrs

Photo : Collected

The Bangladesh Power Development Board (BPDB) has extended its long-term agreement with Shahjibazar Power Company for an additional five years, allowing the company to continue supplying power to the national grid.

Originally, Shahjibazar Power Company's agreement with the BPDB was set to expire on February 9, 2024. However, after considering the company's request for renewal, the BPDB decided to extend the agreement, according to the stock exchange disclosure.

This extension was formalized on July 9, 2024, through the First Amendment to the Agreement for Supply of Power on a rental basis. Under the new terms, the agreement operates on a "No electricity, no payment" basis, meaning there is no guaranteed minimum off-take.

According to the company website, Shahjibazar 86 MW Gas Power Plant, also known as Shahjibazar Rental Power Plant, is situated at Fatehpur village of Shahjibazar under Madhabpur Upazila in Habiganj District.

The Power Plant was sponsored by Shahjibazar Power Company Limited, a subsidiary of Youth Group, as a Rental Power Plant (RPP) for 15 years.

SPCL declared its Commercial Operation Date (COD) on 10 February 2009 and, as per schedule, the power plant will retire on 9 February 2024.

In the July to March quarter of the last fiscal year, the company made consolidated revenue of Tk958.81 crore, which was Tk609.90 crore compared to the same period of the previous year.

Its consolidated profit after tax stood at Tk74.07 crore higher than Tk4.32 crore a year ago. Its earnings per share was Tk3.77, which was only Tk0.48 in one year before.

The consolidated net asset value of the company stood at Tk27.41 at the end of March 2024. 

The company also supplies petroleum products like liquid petroleum gas, special boiling point solvents, mineral turpentine, high-speed diesel, kerosene, octane, and fuel gas to Bangladesh Petroleum Corporation.

Shahjibazar has a 90% owned subsidiary company named Petromax Refinery Limited. It also has an associate company named Midland Power Company Limited. 

As of June 2024, the Sponsors and directors of Shahjibazar Power Company Ltd hold 59.21% of the company's shares, while institutional investors hold 16.36%, and general investors hold 24.43%. 

At the end of Wednesday's trading session, the closing price of its shares stood at Tk65.50 each at the Dhaka Stock Exchange (DSE).