The Bangladesh Rural Electrification Board (BREB) has cancelled the power purchase agreement (PPA) for the 22 MW plant of Doreen Power Generations and Systems Ltd located in Narsingdi.

The BREB is not interested in renewing the PPA and has terminated the deal for Doreen's Narsingdi plant, the private power producer said in a disclosure on the website of the Dhaka Stock Exchange (DSE), citing a letter from the state agency.

Shares of the publicly listed company fell 2.69 percent compared to yesterday before closing at Tk 21.7 today at the DSE.

In February last year, Doreen said the BREB had given consent for the continuation of operations of its Narsingdi power plant as per the terms, conditions, and tariff schedule until a new PPA was signed after negotiation on a "no electricity, no payment" basis.

At that time, the electricity producer said it was in the process of negotiating tariffs and other terms and conditions for the renewal of the PPA with the BREB.

In its disclosure today at the DSE, Doreen said the BREB informed it about the cancellation through a letter on March 11 this year.

Doreen's earnings per share (EPS) dropped by nearly half to Tk 0.53 for the October-December period of 2024 from Tk 1.03 in the same period a year ago due to a significant increase in finance costs of subsidiary companies resulting from an interest rate spike and the devaluation of Bangladesh's currency against the US dollar.

As a result, the company's profit declined in the first half of the year.

During the July-December period of this financial year, Doreen's EPS fell 29 percent year-on-year to Tk 2.01.

Incorporated in 2007, Doreen has three power plants in Tangail, Feni, and Narsingdi.

The plants were supplying 66 MW of electricity to the BREB.

Muhammad Amzad Shakil, company secretary of Doreen, said all three plants have remained shut since December 2024.

At present, Doreen is supplying 225 MW of electricity to the DPDB from its furnace oil-based plants, he said.