Special Correspondent
State-run Titas Gas Transmission and Distribution Company incurred a loss of Tk711 crore in the July-December period of FY2024-25.
According to the unaudited financial statement filed on the Dhaka bourse, its loss per share stood at Tk7.19.
Following the mounting loss, its share prices fell by 2.51% to settle at Tk19.40 in the first hour of the trading session on Wednesday (29 January) at the Dhaka bourse. The state-owned gas distributor reported a significant loss in the second quarter of fiscal 2024-25, driven by a sharp increase in system loss.
System loss refers to the amount of natural gas lost during transmission and distribution.
The company posted a loss of about Tk 523 crore for the October-December quarter.
According to its financial statements, Titas Gas reported a loss per share of Tk 5.28 for the quarter, a stark contrast to the earnings per share (EPS) of Tk 0.40 a year earlier.
For the first half of FY25, the company's loss per share stood at Tk 7.19, compared to an EPS of Tk 0.47 a year earlier. Titas Gas attributed the losses to a system loss of 10.63 percent in the July-December period, significantly higher than the allowable limit of 2 percent. This led to substantial purchase liabilities without corresponding revenue. The company also mentioned the removal of a significant tax exemption as a contributing factor. This exemption previously allowed gas transmission and distribution companies to claim refunds on excess tax deducted at source.
With the exemption removed, Titas Gas had to recognize the full deducted amount as a current tax expense, resulting in a net loss of Tk 711.43 crore for the first six months of the fiscal year.
Despite the losses, the company's net operating cash flow per share increased to Tk 5.53 in July-December, up from Tk 0.60 a year earlier. Titas Gas Transmission and Distribution Company's fixed assets have undergone a significant revaluation, jumping to Tk 4,862 crore. This represents a fivefold increase from the company's previously reported asset value. The company's total fixed assets increased by Tk 3,904.24 crore and stood at Tk 4,862.60 crore. The increment was from Tk 958.35 crore as of June 30, 2023, according to the disclosure. The report was submitted by ACNABIN Chartered Accountants and ZA Capital Advisory.
The amount was recorded as of June 30, 2023, and the company's board of directors has recently approved the asset revaluation report.
During three quarters of the fiscal year 2023-24, the company incurred a loss of Tk 165 crore. Titas Gas declared its earnings per share of Tk 2.14 in the negative for the third quarter of FY24, which was recorded at negative Tk 1.19 for the same quarter of the previous year.
During the first nine months of FY24, the company posted a loss of Tk 1.67 a share. Titas Gas paid a five percent cash dividend to its shareholders for the year ended on June 30, 2023.
The gas distributor got listed with the Dhaka and Chattogram bourses in 2008 by offloading 25 percent of its shares to the public. Currently, Petrobangla holds 75 percent of Titas Gas.
The company transmits natural gas from the gas fields to different areas for power, fertilizer, industrial, commercial, captive power, feed gas for CNG, and domestic consumers.
Its share price fell by 3.5% to Tk 219.20 per share on Wednesday at the Dhaka Stock Exchange.