United Power Generation & Distribution Company Ltd, one of the leading private power producers, continued to suffer from declining profits as losses resulting from high borrowing costs and foreign currency transactions are to blame. 

The listed company said its profit declined to Tk 278 crore in three months to the end of December, down 4 percent from Tk 289 crore a year ago. 

Its earnings per share (EPS) for the October-December quarter dropped to Tk 4.71 from Tk 4.84 a year ago.

United Power's total net profit decreased 21 percent year on year to Tk 462 crore in the July-December period of FY24, bringing the EPS down to Tk 7.84 from Tk 9.85 the previous year. 

The company recorded a consolidated revenue of Tk 1,877 crore in the July-December period, with a collection of Tk 1,374 crore. 

Its revenue was Tk 2,247 crore in July-December of 2022, according to its unaudited financial statement.

United Power attributed this decline to incurring a significant amount of exchange loss in foreign currency transactions.

"At the same time, borrowing cost has increased on the back of high inflation compared to the same period of the last year," it said in a filing to the Dhaka Stock Exchange (DSE).

The power producer pointed out the prospect of reducing electricity generation costs, even though the finance cost and losses for foreign currency transactions continue to be high. 

The company said to support continuous plant operations, it disbursed Tk 1,113 crore specifically to suppliers. 

"Moreover, finance expenses contributed to a greater cash outflow. As a result, Consolidated Net Operating Cash Flow Per Share (NOCFPS) decreased significantly," said the power producer.

Shares of United Power Generation traded unchanged at Tk 177.30 in the DSE as of 12.50 pm.

The electricity producer, which saw its profits fall in the last financial year due to for devaluation of the taka against the dollar, suffered a 37.6 percent fall in year-on-year profit to Tk 184.38 crore in the first quarter of the financial year 2023–24.