B Mirror Report: CVO Petrochemical Refinery Limited has issued a detailed clarification regarding an online news report titled “Suspension of Solvent Production,” following a letter from Dhaka Stock Exchange (DSE) PLC.
In response to a query from the DSE Listing Affairs Department dated April 23, 2026, the company submitted an explanation on April 26, 2026, which was subsequently accepted by the stock exchange.
The company stated that the online report was published without any official clarification from CVO Petrochemical, resulting in incomplete and misleading information in certain sections.
In its clarification, the company said that while the Eastern Refinery PLC’s production activities are temporarily halted, it currently holds more than 10 million litres of naphtha in stock.
It further explained that although naphtha is sourced locally from the Bangladesh Petroleum Corporation (BPC), its price is linked to international oil market rates. However, since the cost of raw materials has become significantly higher than the selling price of solvent products, naphtha procurement has been temporarily suspended to avoid further financial losses. The company also denied claims that production was halted due to a shortage of raw materials.
CVO Petrochemical added that there was no communication between the reporter of the said news and the company’s Chairman, Shamsul Alam Shimu.
The statement also confirmed that solvent production has been temporarily suspended since April 1, 2026, due to unusual price increases in the global oil market. The company said the surge in crude prices would have placed substantial financial pressure if raw materials were procured, negatively affecting profitability.
To protect shareholders’ interests and maintain financial discipline, production will remain suspended until market conditions stabilize and raw material prices return to acceptable levels, the company said.
However, the company assured that there is no uncertainty regarding its operational capacity. All other business activities, strategic planning, and management operations remain normal.
Management further noted that international oil prices are currently on a downward trend and expressed hope that full-scale production will resume soon once conditions become favorable.
