STAR BUSINESS REPORT

Summit Power, the leading private-sector electricity producer, said its profit slumped 43 percent in the third quarter of fiscal year 2024-25 due to the non-renewal of a power purchase agreement by government agencies.

Its earnings per share (EPS) fell to Tk 0.39 in January–March of the current financial year, down from Tk 0.69 in the same period a year ago, the company said in a filing with the Dhaka Stock Exchange (DSE) yesterday.

Including the latest quarter, Summit’s EPS stood at Tk 1.46 in the nine months to March of the financial year 2024-25, down 39 percent year-on-year.

The decline in EPS was mainly due to the expiry and non-renewal of the power purchase agreement (PPA) of one of its plants, the company said.

Another plant was operated only for part of the period as no demand was placed by the National Load Dispatch Centre (NLDC), it added. Summit also said three other plants, after PPA renewal, were brought under a “no electricity, no payment” arrangement, under which they received no capacity revenue.

In addition, income tax expenses rose in the current period as more plants came under the tax bracket following the expiry of their initial PPAs.

However, Summit’s net operating cash flow per share increased slightly to Tk 7.23 in July 2024–March 2025, from Tk 7.05 in the same period a year ago.

Shares of Summit Power inched up 0.72 percent to Tk 14 as of 1:10 pm yesterday on the DSE.