Sri Lanka LPG firm Rs747mn in the red in March
May 30, 2017 10:00 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Profits at Sri Lanka's Laugfs Gas Plc which has interests in cooking gas, leisure and logistics lost 747 million rupees in the March 2017 quarter, with retail liquefied gas under price control, interim accounts show.
The firm reported a loss of 1.93 rupees per share for the quarter. In the year to March it reported a loss of 627 million rupees with leisure sector also in the red.
Gross revenues rose 30 percent to 5.0 billion rupees in the March 2017 quarter from a year earlier, but cost of sales rose at a faster 48 percent to 4.3 billion rupees, shrinking gross profits 27 percent to 683 million rupees.
International price of propane and butane, which is used to make LPG, rose dramatically from the last quarter of 2016, but has plunged from April.
The Saudi Aramco benchmark price for Butane rose to 600 US dollar a tonne in February 2017 from 315 dollar a year earlier. Price fell sharply to 390 dollar a tonne in May.
Propane which rose to 510 dollar a tonne in February has fallen to 385 dollar a tonne in May.
Distributors that do not hedge imports will benefit.