Dhaka Northern Power Generations plans to generate Tk 313.74 crore in revenue a year by selling electricity to Bangladesh Power Development Board (BPDB).

BPDB recently approved the date of commercial operation of a 55MW power plant of Dhaka Northern, which is owned by Doreen Power Generations and Systems, in Manikganj.

“As per a power purchase agreement, BPDB will buy electricity from the plant for 15 years from the date of commercial operation, effective from August 17,” the company said in a statement on the Dhaka Stock Exchange website yesterday.

Doreen Power, which owns a 98.52 percent stake in Dhaka Northern, will benefit from the revenue earnings.

Set up in 2007, Doreen Power has three electricity plants that generate and supply 66MW to BPDB and Rural Electrification Board under two agreements for a period of 15 years, according to the company's website.

It was listed on the stockmarket in April this year. Each share of the company traded between Tk 69.5 and Tk 73, before closing at Tk 70.4 on the DSE yesterday.

Its net profit declined to Tk 13.49 crore in 2015, from Tk 15.5 crore a year ago.

Sponsors hold a 75 percent stake in Doreen Power, institutions 6.9 percent and general investors the rest 18.1 percent.

Prior to its listing, Doreen Power raised Tk 58 crore from the public by floating two crore ordinary shares of Tk 10 each, in addition to Tk 19 as premium. The company used the funds from the initial public offering to set up power plants for its two subsidiaries and to repay bank loans.

At present, 18 fuel and power companies are listed on the premier bourse, accounting for about 14 percent of total market capitalisation.