Barakatullah Electro Dynamics Ltd (BEDL), a power generation company listed on the Dhaka Stock Exchange, has doubled its generation capacity.
The company's share price rose 4.83 percent to Tk 30.4 yesterday.
The company received a green light from Bangladesh Power Development Board for an additional capacity of 50.81MW, taking the total generation capacity to 100.86MW, said Mohammed Monirul Islam, company secretary, told The Daily Star.
BEDL will supply power to the national grid for 15 years through its project, Baraka Patenga Power that began commercial operations on May 4. It holds a 51 percent share in the oil-fired power plant that has eight units with a generation capacity of 6.984MW each.
BEDL's net profit rose 13.44 percent to Tk 17 crore in the nine months to March, from the same time in the previous year. The company's earnings per share stood at Tk 1.27 in the same period.
The company saw a rise in profit due to rising demand for electricity, said Islam. “We are expecting higher profits in the next quarter.”
The price hike of electricity also will boost the company's revenue, said an analyst. “People are not considering the price for some valuable commodities like power.”
The government decided to raise retail power tariff by 6.96 percent to "help distributor companies cut their losses." The new tariff came into effect in March.
BEDL is a joint collaboration between local and non-resident Bangladeshi entrepreneurs. It is the only private sector power generating company formed by NRB investors.
Meanwhile, stocks at the Dhaka Stock Exchange returned to the red yesterday as investors sold shares to avert further losses.
DSEX, the benchmark general index of DSE, fell 0.60 percent or 26.56 points, to close at 4,384.06.
Turnover, the most important indicator of the market, declined 4.63 percent to Tk 259 crore from the previous day.