Emerald Oil withholds price-sensitive info

In a breach of securities rules, Emerald Oil Industries did not inform the stock exchanges and shareholders that its production remained suspended for more than a month and a half.

The decision to put production on hold for maintenance should have been disclosed as it is price-sensitive information in line with securities rules.

But the company did not announce it timely, said an official of Dhaka Stock Exchange, which sent a letter to Emerald Oil.

In response, Emerald Oil said its production remained closed since June 27 for annual servicing of its machinery and equipment, which is a must for a rice bran edible oil manufacturer.

“It was an unintentional mistake,” Meharunnessa Rosy, company secretary of Emerald Oil, said yesterday.

The company carries out annual maintenance every year and it takes 35-40 days. “But this year, the annual servicing was delayed for rainy season.”

Production is expected to resume by August 20, she said.

Saifur Rahman, spokesman and an executive director of Bangladesh Securities and Exchange Commission, said the regulator will take steps after receiving an observation report from the premier bourse.

Emerald Oil was listed on the stockmarket in 2014. Each share of the company traded between Tk 37.5 and Tk 37.9, before closing at Tk 37.6 on the DSE yesterday. Its net profit rose to Tk 15.28 crore in fiscal 2014-15, from Tk 8.35 crore a year ago.

The company produces the Spondon edible oil by processing rice bran collected from auto rice mills.

Sponsors own a 30.45 percent stake in Emerald Oil, while institutional investors hold 10.48 percent and the general public 59.07 percent.