Message from the Chairman

“26 Years: Unwavering Commitment to Serving Bangladesh’s Power Needs”

Dear Owners of Summit Power Limited,

Greetings and As-Salam-u-Alaikum. Welcome to the 27th Annual General Meeting (AGM) of Summit Power Limited (SPL).

In line with the Founder Chairman’s long-term vision, SPL remains committed to institutionalization and continuity. In early 2024, after 15 years as Vice- Chairman, I assumed the role of Chairman. In January 2025, Major General Dr. Monirul Islam Akhand (retd.), ndc, psc, PhD, was appointed as Managing Director, and two senior executives - Mr. A.K.M. Asadul Alam Siddique and Mr. Swapon Kumar Pal FCA, CMA were promoted to key leadership positions.

Navigating Challenges and Restoring Stability

Since 2022, SPL, like other Independent Power Producers (IPPs), has faced delayed payments, currency depreciation, and high-interest loans. These challenges led to a decline in FY 2022-23 profits, primarily due to foreign exchange costs on HFO imports. However, in FY 2023-24, profits have rebounded as exchange rate has stablized.

Despite financial and geopolitical pressures, SPL has maintained a AAA credit rating for over five years and consistently provided a cash dividend exceeding 10%. Our robust governance and financial transparency continue to earn the trust of global financiers, including Clifford Capital Pte. Ltd, SMBC, IDCOL, ICD, and OFID.

Operational Excellence and Industry Leadership

Summit’s power plants rank among the most efficient in Bangladesh and were originally awarded contracts for offering the lowest tariffs. Even with overdue payments exceeding nine months at times, we ensured uninterrupted electricity generation. Last year, three power plants received Power Purchase Agreement (PPA) extensions under the “No Electricity, No Payment” model—maximizing infrastructure utilization while benefiting customers

Meanwhile, our Jangalia (35 MW) and Narayanganj Unit I (102 MW) power plants were decommissioned at the end of their PPAs. We are actively seeking international buyers and believe that clear government policies on plant relocation, disposal, and contract renewals would provide much-needed certainty for the sector.

Future Outlook

The Board has recommended a 10% cash dividend, reaffirming its commitment even during last year’s profit downturn. With improving USD reserves, remittances, and BPDB’s payment regularization, we anticipate stronger earnings and sustainable dividends moving forward.

I extend my sincere gratitude to Engr. Md Mozammel Hossain, our outgoing Managing Director, for his leadership during challenging times, including the rapid development of a 300 MW power plant and the establishment of Prof. Hamiduzzaman Khan Sculpture Park.

Finally, I thank our shareholders, employees, investors, lenders, and policymakers for their unwavering support. We look forward to building on this partnership for years to come.

Sincerely

Latif Khan
Chairman, Summit Power Limited
17th February 2025