Written by The Banking Post
Padma Oil Company posted a 13.6 per cent year-on-year rise in profit to Tk 1.42 billion in the October–December quarter of FY26, driven mainly by higher non-operating income from fixed deposits.
Non-operating income climbed 24 per cent to Tk 1.48 billion during the quarter, benefiting from rising interest rates. Company Secretary Ali Absar said interest on short-term deposits increased to 10.5 per cent from 9.5 per cent, while income from fixed deposit receipts (FDRs) remained stable.
The earnings growth came at a time when other state-run fuel companies, notably Jamuna Oil, have faced setbacks due to blocked deposits in liquidity-strapped Islamic banks undergoing merger. Absar said Padma Oil holds only a small portion of its funds in those banks, which shielded its income stream.
According to financial statements, Padma Oil has FDRs worth Tk 1.93 billion in the merged banks, compared to more than Tk 10 billion held by Jamuna Oil.
Revenue from core petroleum trading, earned through regulated margins of Tk 0.60 and Tk 0.70 per litre, edged down slightly to Tk 0.83 billion in the quarter from Tk 0.86 billion a year earlier. However, revenue income rose 6.17 per cent year-on-year to Tk 1.72 billion in the first half of FY26.
In July–December, non-operating income grew 22 per cent to Tk 3.03 billion, lifting half-yearly net profit by 20 per cent to Tk 2.99 billion.
For FY25, Padma Oil reported a 37.76 per cent rise in profit to Tk 5.62 billion and declared a 160 per cent cash dividend, maintaining its ‘A’ category status.
The results underscore Padma Oil’s continued reliance on interest income to support profitability amid modest growth in core trading margins.
