Publicly listed Emerald Oil Industries, the producer of Spondon branded rice-bran oil, has reported a profit of Tk6.6 crore, reflecting a remarkable 445% year-on-year increase in the fiscal 2022-23.
Based on the profit growth, the company paid a 5% interim dividend and declared a 5% final cash dividend for FY23 for its shareholders except previous sponsor-directors who hold 29.92% shares.
After five straight years of losses, Emerald Oil returned to profits in the 2021-22 fiscal year.
It had made a profit of Tk18 crore back in FY16. Then, the company fell into huge losses as the factory closed down after its owner fled because of a loan scam. And, owing to losses, the company failed to declare dividends from FY17 through FY21.
Minori Bangladesh, a subsidiary of the Japanese farming company Minori Co Ltd, took over Emerald Oil and resumed its production in January 2022.
Resuming operations, Emerald Oil’s revenue and profit gradually increased under the new management.
In FY23, its revenue increased by 158% to Tk111 crore, compared to FY22.
Md Afzal Hossain, managing director of Emerald Oil, told the Business Standard, “The revenue of the company grew significantly owing to increase in capacity utilisation.”
“The company could utilise only 23% of its production capacity in FY22, whereas it utilised 50% of the production capacity in FY23. In the first quarter of the current fiscal year, the company utilised 100% capacity.”
“Hence, we planned to increase production capacity under a tripartite agreement signed among Minori, Emerald Oil and Jamuna Edible Oil. With the successful run to use the Jamuna Edible Oil plant, we hope revenue will grow significantly in the future,” he added.
Under the agreement signed in September, Emerald Oil will refine crude oil at the Jamuna Edible Oil plant, and Minori will provide working capital and use the Jamuna Oil plant.
In the July to September quarter of FY24, the company reported a 568% year-on-year growth in profit. Its earnings per share stood at Tk1.47.
At present, the oil producer is running its factory for only seven to eight hours a day owing to a gas crisis.
This is why it has set up a new husk boiler that will run for 24 hours without any interruption so that it can continue its daily oil production.