BPDB may purchase power from Summit Power

Mohammad Tarequzzaman

Summit Power Limited is a listed capital market which is engaged to trade on electricity generation and supply. The company has been operating good business for a long time. The company has given a sufficient dividend to the respective shareholders for the last five years.

Madanganj Power Plant of the Summit Power limited signed agreement between BPDB and Summit Power limited. Summit Power supplied electricity to BPDB from their plant Madanganj power plant, according to the agreement. But the Madanganj Power Plant has expired its tenure. Now those are going to amend their sign to new terms. Expiration of the sign will be 2 years, according to the Dhaka Stock Exchange (DSE) sources.

Summit power limited further informed that BPDB has verbally informed that the cabinet purchase committee of the Government of Bangladesh has approved purchase of electricity on ‘No electricity No payment’ basis for two years from 102 MW HFO Fired Narayanganj (Madanganj) Power Plant. So BPDB might purchase electricity from Summit Power’s Plant Madanganj) Power Plant.

Meanwhile Summit Power has not received any official letter from BPDB in this regard yet. BPDB has also been verbally instructed to resume operation of the said power plant. Summit Power has already started resuming operation from March 24, 2022 which remains closed since April 01, 2022 due to expiry of Power Purchase Agreement (PPA). BPDB and the said company are in the process of finalizing amended PPA for new terms of two years from the date of signing of PPA.

Here is mentionable that Summit power limited is a fundamental company. Last closing price of the company Tk 38.60. Last 52 weeks closing price was Tk 36.20 to 52.10 of the company. Tk 1500 crore authorized capital and paid up capital above Tk 1067 crore of the company at present. Almost Tk two crore is in reserve and surplus without OCI of the company. Last two quarters earning per share (EPS) of the company was profitable.