Mobil Jamuna Lubricants declares higher dividend as profit surges

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Mobil Jamuna Lubricants declares higher dividend as profit surges
Mobil Jamuna Lubricants declares higher dividend as profit surges

Mobil Jamuna Lubricants declares higher dividend as profit surges

The company’s share price slightly increased at the Dhaka Stock Exchange yesterday and closed at Tk98.70
Mobil Jamuna Lubricants declares higher dividend as profit surges

Mobil Jamuna Lubricants (MJL) Bangladesh Limited, the country’s largest lubricant company, has declared a 55% cash dividend for the shareholders for FY21 as its profit surged 36%.

In the previous fiscal year, the company paid a 45% cash dividend as its profit declined 6% due to the Covid-19 shock.

The company’s share price slightly increased during yesterday’s trading session at the Dhaka Stock Exchange. At the end of day, its shares closed at Tk98.70.

During the last fiscal year, its consolidated earnings per share stood at Tk7.53, which was Tk5.52 in the previous year.

At the end of FY21, its consolidated net asset value per share was Tk39.69.

The MJL are selling lubricant under multinational brand ExxonMobil and its own brand Omera. The company is also engaged in LPG business. They are selling gas cylinders across the country under the Omera brand.

According to the company’s financial statement, the overall business environment was nearly steady despite the pandemic. That is why the demand for its products increased in the last fiscal year compared to the previous fiscal.

Currently, the company holds 26% share of the country’s lubricant market, which is worth around Tk3,000 crore.

As a market leader, the company is facing a number challenges to run lubricant business.

According to the MJL Bangladesh’s annual report, too many lubricant brands are in the same battle to secure the market shares. Besides, the market is flooded with different sub-standard products.

Many recognised brands are facing difficulties as more than 100 brands are operating in the market.

Also, the market insiders think lack of government intervention in the policy to monitor lube trade has made the market uncontrollable.

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