Written by The Banking Post
Summit Power’s annual profit tumbled 88% year-on-year to Tk 0.41 billion in FY25, hit hard by the shutdown of nearly half its power plants and a massive impairment loss of Tk 1.52 billion.
The company said seven out of its 15 plants, with a combined capacity of 234 MW out of 930.55 MW, were shut during the year. The closures and reduced output were driven by the government’s changing energy priorities, gas shortages, and expiring power purchase agreements (PPAs).
Four of its plants operated partially under a “No Electricity, No Payment” arrangement, while three remained completely idle, Summit disclosed in its earnings statement.
As a result, earnings per share (EPS) plummeted to Tk 0.38 in FY25 from Tk 3.13 a year earlier. The company’s net asset value (NAV) also fell slightly to Tk 40.57 per share, down from Tk 41.44.
Summit attributed the impairment loss to a permanent decline in the recoverable value of its assets, such as turbines and power plants — a reflection of reduced demand and weaker long-term revenue prospects.
The steep profit drop underscores how private power producers are struggling amid the government’s pivot toward renewables and efforts to curb electricity purchases from costly oil-fired plants.
Currently, the Bangladesh Power Development Board (BPDB) generates 43% of power on its own and 9% through joint ventures, while private producers supply 39% and imports account for another 9%. Private producers once held a much larger share of the market.
Despite the earnings slump, Summit announced a 10.5% cash dividend for FY25 — a modest increase from last year’s 10%.
Following the disclosure, Summit Power’s share price fell 3.47% to Tk 13.90 on the Dhaka Stock Exchange (DSE) on Thursday.
