Doreen Power Generations and Systems reported a year-on-year profit drop for the first quarter of the current fiscal year, citing plant shutdowns and soaring operational costs as key factors.

According to unaudited financial reports, the company’s profit fell by over 17% to Tk 26.95 crore in the July-September quarter of 2024 compared to the same period last year. Its earnings per share (EPS) also declined to Tk 1.48, down from Tk 1.80 during the same timeframe in 2023.

The power producer attributed the reduced profitability to the closure of three of its power plants since mid-2023 and losses incurred from the sale of non-current assets from its facilities in Tangail and Feni.

Despite the dip in profit, Doreen Power recorded a 20% year-on-year revenue increase, reaching Tk 522.98 crore in July-September. The company stated that higher customer demand for electricity drove the revenue growth.

However, this positive development was overshadowed by a significant rise in costs. The cost of sales surged to Tk 431.73 crore during the quarter, compared to Tk 337.53 crore in the same period last year. The increase was attributed to heightened electricity generation expenses.

Additionally, the company’s net operating cash flow per share dropped further into the negative, standing at Tk 15.88 for the quarter, compared to Tk 6.07 in the negative during the corresponding period in 2023. Doreen Power explained this was due to a reduction in customer bill receipts during the quarter.