Doreen Power Generations and Systems Ltd has been removed from the Dhaka Stock Exchange's (DSE) list of companies flagged over concerns about their ability to continue operations after its latest audited financial statements found no material uncertainty over its going concern.
The development comes as the listed power producer reported a 57.6% year-on-year increase in earnings per share (EPS) to Tk5.03 in FY26, from Tk3.19 in FY25. Its board has also recommended a 15% cash dividend, up from 10% a year earlier.
The company's shares closed at Tk30.60 on the DSE today (26 October).
In a press statement, the company said the exchange removed it from the list after its auditor did not flag any going concern risk or issued a qualified opinion in the financial statements for the year ended 30 June 2026.
Why Doreen Power was flagged
Doreen Power was placed on the DSE's going concern risk list following an observation in its audit report for FY25 under the heading "Material Uncertainty Related to Going Concern".
Based on the observation, the DSE classified the company as a non-marginable security under Rule 11(6) of the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025.
According to the company, its auditor, Huda Vasi Chowdhury & Co, later clarified in writing that the observation applied only to the parent company's separate financial statements, not the group's consolidated accounts.
The uncertainty arose from the expiry of power purchase agreements (PPAs) for three gas-fired power plants with a combined capacity of 66MW operated by the parent company.
However, three subsidiaries continue to generate electricity under valid PPAs with the Bangladesh Rural Electrification Board (BREB) and Bangladesh Power Development Board (BPDB), with agreements running until 2031 and 2037.
The auditor confirmed that the expiry of the parent company's PPAs did not create the same going concern uncertainty for the consolidated group, the company said.
Doreen Power had earlier approached the DSE and the Bangladesh Securities and Exchange Commission (BSEC), submitting the auditor's clarification and seeking removal from the list. The latest audit report has now resolved the issue, the company said.
Board recommends 15% cash dividend
At a board meeting on 8 October, Doreen Power recommended a 15% cash dividend for FY26, compared with 10% in FY25.
Based on the Tk10 face value of each share, the proposed dividend amounts to Tk1.50 per share, subject to shareholder approval.
The company's annual general meeting (AGM) is scheduled for 24 December at 11am on a digital platform. The record date for the dividend and AGM-related entitlements is 12 November.
Its net operating cash flow per share rose 60.9% to Tk18.96 in FY26 from Tk11.78 a year earlier, while net asset value per share stood at Tk57.12 on 30 June 2026, up from Tk52.45 a year earlier.
Listed in 2016, Doreen Power remains in the DSE's "A" category and has regularly held annual general meetings and distributed dividends, according to the company.
It has an authorised capital of Tk200 crore and paid-up capital of Tk181.12 crore, comprising around 18.11 crore shares.
The company's market capitalisation stands at Tk559.66 crore, while its free-float market capitalisation is Tk158.35 crore. Sponsors and directors hold 66.61% of its shares, institutional investors 16.90%, and general investors the remaining 16.49%.