Linde Bangladesh’s profit surges 64% on rising oxygen demand
The stock price of Linde Bangladesh rose 2.71 per cent to Tk 1,376 today after the company said that it has made higher profits in the first half of this year.
In the January to June period of the current year, its revenue rose 26 per cent to Tk 252 crore. At the same time, its profits surged 64 per cent to Tk 63 crore, according to the financial report.
The listed multinational oxygen supplier company witnessed higher sales and profits in the first half of 2021 as the demand for oxygen rose along with the spread of Covid-19 infections in the country.
In the very recently ended quarter, when the crisis of the pandemic was intensified, its revenue and profits rose mostly. Linde's revenue up 104 per cent to Tk 125 crore in the April to June period of 2021 when profits increased 385 per cent to Tk 34 crore year-on-year.
However, the company still struggling to see its revenue that was logged in the first half of 2019. At that time, the company's revenue was Tk 283 crore.
It sells its products to more than 35,000 customers from a wide spectrum of industries running from chemicals and petrochemicals to steel and hospitals.
But after starting the pandemic the company's main focus was on meeting the medical oxygen demand and topmost priority was given to ensuring that hospitals get their requirement and no hospital runs dry, said in the annual report for the year 2020.
In the first half of the current year, the company's earnings per share increased mainly for higher revenue than last year which was heavily impacted by the stricter countrywide lockdown, said Abu Mohammad Nisar, company secretary of Linde Bangladesh.
Its EPS rose to Tk 41.42 in the first half of the year which was Tk 25.16 in the same period of the previous year.
Its net operating cash flow was increased too in the year due to an increase in revenue and lower operational costs, he added.