COLOMBO: Sri Lanka’s Laugfs Gas PLC said June 2016 net profit fell 92% to Rs26 million from a year ago as finance rose sharply owing to borrowings to diversify business in the island and overseas.
Sales rose 45% to Rs3.9 billion during the period, according to interim accounts filed with the stock exchange. June 2016 quarter earnings per share fell to 07 cents from 84 cents a year ago.
The company was hit by recent floods, virtually paralyzing all its operations for nearly two weeks making heavy impacts of the revenue and profitability of the company, a statement said. Laugfs Gas chairman and chief executive W. K. H. Wegapitiya said the firm, which started by supplying liquid petroleum gas, has diversified investments rapidly in recent months.
“The company’s profit for the period, took a momentary dip during the period ended due to cost of borrowings made largely to finance the investments,” he said.
“The company is very confident that the returns are imminent in the medium to long term out of the judicious investment made.” Laufgs has invested in LPG distribution in Bangladesh, an LPG terminal in Hambantota port, a new gas carrier, a solar power plant and a hotel.
