ECONOMYNEXT – Sri Lanka’s Aitken Spence December 2015 quarter net profit fell 26.7 percent to 637 million rupees from a year ago with lower earnings from its Maldivian resorts and the end of power supply deals although maritime and logistics businesses did better.
Revenue for the quarter fell by 14.6 percent to 6.7 billion rupees, interim results filed with the Colombo Stock Exchange showed.
December quarter earnings per share were 1.57 rupees. EPS for the nine months ending 31 December 2015 were 3.49 rupees with net profit down 35.4 percent to 1.4 billion rupees while sales fell 28.2 percent to 18.6 billion rupees.
The revenue loss from the cessation of the power purchase agreement of Ace Power Embilipitiya in April 2015 had a “significant” effect on the results, a company statement said.
Other operating income for the nine months to 31st December 2014 included insurance income of 351 million rupees for the fire damage at a resort in Maldives during 2013/14.
“Diminished returns from the Maldives due to external factors and consolidation of hotel investments in Sri Lanka, negatively affected the returns from the tourism sector,” said J M S Brito, Deputy Chairman and Managing Director of Aitken Spence PLC.
The group’s hotels arm recently completed a 100-room extension to its beach property in Kalutara, which is now a 200-room upgraded resort. In addition, the company is currently overseeing two large hotel projects in Negombo and Ahungalla.
Aitken Spence operates a wide portfolio of hotels and resorts in Sri Lanka, Maldives, India and Oman.
Its travel arm is a joint venture with TUI Travel. It also acts as GSA for major airlines in Sri Lanka and the Maldives.
“We are pleased to report increase in profits from companies in the port management, ship agency and airline sub sectors contributed towards the profits of the Maritime & Logistics Sector.” Brito added.
Aitken Spence has port management services in Africa and the South Pacific.
The depreciation of the rupee has adversely affected the company due to foreign currency loans obtained for overseas investments, the statement said.