Titas Gas suffers Tk 523cr loss in Q2
Titas Gas Transmission and Distribution Company, the state-owned gas distributor, reported a significant loss in the second quarter of fiscal 2024-25, driven by a sharp increase in system losses.
System losses refer to the amount of natural gas lost during transmission and distribution.
The company posted a loss of about Tk 523 crore for the October-December quarter.
Titas shares closed at Tk 19.20 yesterday on the DSE, losing 3.52 percent from the previous day.
According to its financial statements, Titas Gas reported a loss per share of Tk 5.28 for the quarter, a stark contrast to the earnings per share (EPS) of Tk 0.40 a year earlier.
For the first half of FY25, the company's loss per share stood at Tk 7.19, compared to an EPS of Tk 0.47 a year earlier.
Titas Gas attributed the losses to system losses of 10.63 percent in the July-December period, significantly higher than the allowable limit of 2 percent. This led to substantial purchase liabilities without corresponding revenue.
The company also mentioned the removal of a significant tax exemption as a contributing factor. This exemption previously allowed gas transmission and distribution companies to claim refunds on excess tax deducted at source.
With the exemption removed, Titas Gas had to recognise the full deducted amount as a current tax expense, resulting in a net loss of Tk 711.43 crore for the first six months of the fiscal year.
Despite the losses, the company's net operating cash flow per share increased to Tk 5.53 in July-December, up from Tk 0.60 a year earlier.
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