Dhaka, Bangladesh (BBN) – The management of the Titas Gas Transmission and Distribution Company has decided to appeal against the order of Bangladesh Energy Regulatory Commission (BERC) regarding re-fixing the distribution margin of the gas company.
“The company’s management has decided to appeal against the order of Bangladesh Energy Regulatory commission regarding the re-fixing the distribution margin of Titas Gas as per the BERC regulations,” said a statement posted on the Dhaka Stock Exchange website on Thursday.
Re-fixing the net profit distribution margin following the new tariff structure for gas consumption set by BERC in August this year had a negative impact on the earnings per share, said a Titas Gas official.
The BERC order took effect from September 1 this year, he added.
Following the re-fixing the distribution margin of state-run Titas Gas, the net profit distribution margin of the company has been reduced by 33.72 percent, the official alleged.
Consequently, the company’s share price also declined 30 percent in the last nine days to close at BDT 49 on Wednesday.
The declining share prices prompted the Bangladesh Securities regulator to go for an inquiry on Wednesday.
As per the decision of the Bangladesh Securities and Exchange Commission (BSEC), the DSE authorities have to from a two member committee and submit a report within five working days.
The government owns a 75 percent stake in Titas Gas, while institutional investors own 16 percent and the general public 9 percent.
BBN/SS/ANS