Summit Power Limited, a major capital company in Bangladesh’s power sector, has reported a significant financial loss (impairment loss) of over Tk 150 crore for the fiscal year 2024-25, primarily due to the year-long shutdown of seven of its power plants.
The publicly listed company disclosed this information through the Dhaka Stock Exchange (DSE) on Thursday (October 23).
Sharp Decline in Profit and Capacity
According to the company’s disclosure, seven out of Summit Power’s fifteen operational power plants remained completely shut down. Of the remaining eight, four operate on a ‘No Electricity, No Payment’ basis, and the government did not purchase power from three of those four, effectively rendering them inoperative throughout the year.
Consequently, the company’s power generation capacity plummeted from 930.55 MW to 234 MW. For the seven power plants that were completely shut, the company booked an impairment loss of Tk 152 crore for the 2024-25 fiscal year.
Profit Slumps by 88%
This massive loss stemming from the power plant closures severely impacted the company’s profitability during the year.
The financial report shows that Summit Power’s consolidated net profit after tax for the 2024-25 fiscal year was only Tk 40.58 crore ($\text{Taka 405.8 million}$). This is a drastic drop from the Tk 334.73 crore ($\text{Taka 3.3473 billion}$) profit recorded in the previous fiscal year.
In effect, the company’s consolidated net profit fell by Tk 294.15 crore or approximately 88% year-on-year.
Dividend Increased Despite Profit Fall
Despite the substantial slump in profit, Summit Power has recommended an increased dividend for its investors.
The company has proposed a $10.5\%$ cash dividend for the reported fiscal year, which is an increase from the $10\%$ cash dividend distributed to shareholders in the previous fiscal year.
The company has called for an Annual General Meeting (AGM) to be held virtually on December 24 at 11:30 AM to seek shareholder approval for the declared dividend and other agenda items. The Record Date for this purpose has been set as November 11.
