TITAS GAS TRANSMISSION AND DISTRIBUTION COMPANY LIMITED Titas Gas Transmission & Distribution Company Limited (TGTDCL)

was established in the year 1964. After liberation of Bangladesh the Company was nationalized under the Presidential order and now its overall activities has been placed under the supervision and control of Bangladesh Oil, Gas & Mineral Corporation (Petrobangla). The Company has been listed with Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on 2008. The company is majority owned (75%) by the Government. Rests of the shares are owned by the Public investors. The main objective to transmit natural gas from the gas fields to different areas to distribute the gas to the Customers. Currently four companies operated under the Petro Bangla. Titas Gas Transmission &
On the basis of Pipeline Construction (In Km.) On the basis of Customer Connection (In Numbers)

Distribution Company Limited is the largest company among these companies. Currently Titas has 12037.26 Km of constructed pipeline for gas supply. In

Company Name Titas Gas Transmission and Distribution Company ltd. Jalalbad Gas Transmission and Distribution Company ltd. Bakhrabad Gas Systems limited Prakritic Gas Company Limited

12037.26

97820

3034.41 6427.99

10468 44673

respect of customers connection Titas Gas Company has the highest no of customers. Currently Titas Gas Company has 97820

1026.49 8883 Source: Annual Report 2010

customers connection. No of Customers

Govt. owned Power Company, Private Power Company, Fertilizer, CNG pump, Different industries, commercial and Domestic users are the main customers of the company. In last five years curve there is an increasing trend seen in the last five years data. In 2010 growth rate of no of customers was 7%. In 2009 growth rate of no of customers was 8%. So growth of no of customers is increasing in a decreasing rate.
Source: Annual report 2010 and SB Research 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0

1239942 1110163

1350162

1458743

1556563

2006

2007

2008

2009

2010

Gas purchase: Titas Gas Company supply gas from different gas fields: Titas Jalalabad Beani Bazar Habiganj Fenchuganj Rashidpur Narsingdi Bibiyana Kailashitilla Bakhrabad Moulvi Bazar Bangura

From 2006 to 2010 Gas purchase is Gas Purchase (In MMCM)

16000 14000 11833.38 12000 10000 8000 6000 4000 2000 0 2006 2007 2008 2009 2010 10875.8 12676.67 13558.97 14658.39

increasing. In 2010 the company purchase 14658.39 million cubic meter gas (MMCM). Compare to preceding year gas purchase

increased by 8%. The company ensures uninterrupted supply of gas to its consumers and company purchase gas according to customers demand. So increasing in purchase indicates the future growth of the company.

Source: Annual report 2010 and SB Research

Gas Sales:
Company Name Titas Gas Transmission and Distribution Company Ltd. Jalalbad Gas Transmission and Distribution Company Ltd. Bakhrabad Gas Systems Limited Prakritic Gas Company Limited 2993.06 727.523 1553.2 283.13 Source: Annual Report 2010 1422.604 565.96 Sales (IN MMCM) 14962.94 Revenue (In Crore Taka) 6379.49

Sales of Titas Gas Transmission and Distribution Company Ltd. sales are the highest among the four companies which operates under petrobangla. In 2010 a total of 14962.94 MMCM of gas was sold and sales revenue of TK 6379.49 crore was earned. In last

Sales Revenue (In Crore Taka)

7000 6000 5000 4000 3000 2000 1000 0 2006 2007 2008 2009 2010 3408.00 4410.17 3840.77 5230.60 6379.49

five years growth of revenue was increasing. The rate in sales

revenue for the year 2010 was 21.96%. In 2009 sales revenue growth rate was 18.60%. So the companys growing in increasing rate. Its indicate growth of the company in future.

Source: Annual Report 2010 & SB Research

System Loss: System loss means difference between the Outputs (MWHrs) and Sales (MWHrs). Outputs are all system receipts (purchases made on behalf of full service customers, receipt of energy for delivery to retail access

customers, and internal generation). Sales are metered usage (full service sales and retail access deliveries). From 2006 to 2009 system loss is System Loss/(Gain)
7 6 5 4 3 2 1 0 -1 -2 -3 2006 2007 2008 2009 2010 -2.14 0.81 3.39 5.26 6.47

decreasing. In 2010 the company is achieve system gain. In 2010 the company implemented action plan thats why company achieve system gain. Action includes monitoring area wise gas input-output and thereby fixing responsibilities for system loss, RMS sealing, calibration and

replacement of old meters, installation

Source: Annual Report 2010 & SB Research

of internal pipeline of industrial etc.

Profit: From 2006 to 2010 Operating profit and net profit after tax is also increasing as sales is increasing. In 2010 gross profit increased by 35% and net profit after tax is increased by 34%. In 2009 growth rate of gross profit is 22% and growth rate of net profit after tax is 29%. So not only gross profit and net profit is increasing but also growth rate of gross profit and net profit after tax is increasing. This also indicated future growth of the company. Operating profit margin and Net profit margin is also increasing over the years. So the company is profitable over the years and it achieved operating and financial efficiency.
16% 14% 12.08% 12% 10% 8% 6% 4% 2% 0% 2008 2009 2010 Source: SB Research 9.57% 13.77% 12.46% 11.50% 10.43% Operating Profit Margin(%) Net Profit Margin(%) Millions

10,000 8,000 6,000

Operating Profit

4,000 2,000 0
2008 2009 2010

Net profit (After tax)

Source: Annual Report 2010 & SB Research

Quick Ratio: From 2006 to 2010 quick ratio of the company is Quick ratio
1.2 1.1 1 0.9 2006 2007 2008 2009 2010 1.02 1.07 1.16 1.12 1.05

above 1. In 2010 quick ratio was 1.05. So as per quick ratio principle TTDCL is in the good position.

Source: SB Research

Return on Assets: Return on Fixed Assets

80% 60%
64.54%

TTDCL is supply Gas. As this a technology based company, the company is asset intensive. Over the last five years return on fixed assets is increasing.

40% 20% 0%
22.12% 24.41% 37.13%

47.45%

In 2010 growth rate of return on fixed assets was 36%. So the management is efficiently utilizing

2006

2007

2008

2009

2010

the fixed assets to generate the profits.

Source: SB Research

Return on Capital Employed: In last five years (2006-2010) return on Capital Retun on Capital Employed
50% 40%
42.60%

Employed is increasing. In 2010 return on capital employed is increased by 12%. So the

30% 20% 10% 0% 2006 2007 2008

18.18% 20.94% 25.85%

37.88%

management is efficiently utilizing the capital employed to utilize the profits.

2009

2010

Source: SB Research