ECONOMYNEXT – Sri Lanka’s Laugfs Gas group slipped back in to the red in the December 2017 quarter with losses rising 184% to Rs527 million from a year ago.
The company made a Rs1.36 loss per share, according to interim results filed with the stock exchange. The stock was last traded at Rs26.20 Friday.
December quarter sales rose 38% to Rs6.6 billion but cost of sales rose faster, at 52% to Rs5.6 billion, squeezing margins and reducing gross profits by eight percent to a billion rupees.
In the nine months to 31 December 2017, the loss per share was Rs2.43 with losses of Rs942 million although sales rose 40% to Rs18 billion.
Laugfs Gas had returned to profit in the September 2017 quarter with net earnings of Rs40 million, down 85% from a year ago, after three successive quarters of losses.
The firm has attributed the downturn to local price controls as LPG and steel prices rose internationally, rupee depreciation and rising interest costs and said it continued to lobby for a pricing formula.
(COLOMBO, February 17, 2018)