The company had accumulated losses of Tk2,276 crore over the previous four fiscal years.
Representational Image. Illustration: TBS
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Representational Image. Illustration: TBS
Titas Gas Transmission and Distribution PLC returned to profitability in the July-September quarter of FY27, ending four consecutive years of losses, as a sharp reduction in system loss helped lower its gas procurement costs.
According to its unaudited financial statements, the state-owned gas distributor posted a net profit of Tk147 crore in the first quarter of FY27, compared with a loss of Tk249 crore in the same period a year earlier.
The company had accumulated losses of Tk2,276 crore over the previous four fiscal years.
Its earnings per share (EPS) stood at Tk1.49, compared with a negative Tk2.52 in the July-September quarter of FY26, according to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (12 November).
Investors responded positively to the earnings disclosure. Titas Gas shares rose 9.50% to Tk19.60 on the DSE, lifting the company’s market capitalisation by Tk169 crore to Tk1,939 crore.
Titas Gas attributed the turnaround mainly to a 4.05 percentage-point reduction in system loss, which fell to 5.91% in the quarter from 9.96% a year earlier. The improvement significantly reduced gas purchase costs and helped the company move from negative to positive earnings.
However, the system loss remains well above the regulatory allowable limit of 2%, indicating that substantial scope remains for further improvement.
Despite the return to profit, the company’s revenue declined 14% year-on-year to Tk8,329 crore during the quarter. Gas sales revenue fell 14% to Tk7,921 crore, while operational income dropped 13% to Tk408 crore.
Titas Gas distributes natural gas to power plants, captive power units, fertiliser factories, industrial and commercial establishments, CNG stations and households. It collects the full end-user gas tariff but passes payments for the relevant components of the gas price to entities including Petrobangla, Bangladesh Gas Fields Company, Bapex, Gas Transmission Company and RPGCL. The company retains only the distribution margin as its primary source of income.
The company said its gas purchase volume declined compared with the corresponding period of the previous financial year, while the reduction in system loss also helped contain purchase costs.
Its operating cash flow, however, came under greater pressure. Net operating cash flow per share (NOCFPS) stood at negative Tk5.73, compared with negative Tk0.58 a year earlier, mainly because payments for gas purchases exceeded collections from customers.
Net asset value per share rose to Tk85.43 as of 30 September 2026, from Tk83.94 on 30 June.
Earlier, the company recommended a 2% cash dividend for its shareholders for the fiscal year 2025-26. To approve the FY26 annual accounts and the recommended dividend, the company has scheduled its Annual General Meeting (AGM) for 24 December. Also, 17 November has been set as the record date for determining shareholders eligible for the recommended dividend and participation in the AGM.
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