Laugfs posts Rs.539mn in 1H12 amidst tough conditions

Country’s only privately-owned liquid petroleum gas provider, Laugfs Gas PLC’s net profit rose to Rs.539 million during the second half of FY 12, against the net profit of Rs.470 million, helped by negative goodwill on an acquisition, the financial accounts released to the Colombo Stock Exchange showed.

The firm’s revenue during the six months rose 33 percent Year-on-Year (YoY) to Rs.4.87 billion while the gross profit also grew 54 percent YoY to Rs.1 billion.

According to the income statement, approximately Rs.175 million has been accounted as negative goodwill on acquisition.

The Earnings per Share for the quarter stood flat at Rs.1.39.

Meanwhile Laugf’s net profit for the FY 12 rose to Rs.942 million from Rs.851 million recorded in the previous year amidst a revenue increase of 30 percent.

The balance sheet of the company showed that it has provided Rs.150 million for losses stemming from currency depreciation.

Despite the rise in profits, the EPS for the year fell to Rs.2.43 from previous year’s Rs.2.85.

“Laugfs Gas PLC as the parent company performed well under difficult circumstances of escalating global LP Gas prices and currency deprecation, making the cost of imports surging, recorded a revenue growth of 29% ,“a press statement issued by the company said.

A segmental analysis of the business operations of the group showed that the after tax (PAT) profit of its LP gas operations has gone down to Rs.569 million during FY12 from Rs.676 million the previous year.

The services sector of the group, which includes vehicle emissions testing services made an increased PAT of Rs.302 million while the leisure sector was able to see a turnaround with a PAT of Rs.168 million against a loss of Rs.1 billion.

The property development sector of group has been able to reduce losses significantly, though the energy sector of the group underperformed.

“Laugfs Gas PLC and its subsidiaries once again performed strongly despite a gloomy environment created for its energy sector operations with escalating global LP Gas prices coupled with depre- ciation of the Sri Lanka Rupee against the US dollar, as Central Bank adopted policy of non-intervention in the foreign currency market,” the press statement by the company said.

It also said that the property development undertaken by Laugfs Property Developers (Pvt) Ltd is also progressing rapidly, and hopeful of making it operational by around second quarter of the next financial year.

Laugfs Leisure Ltd, the Leisure arm within the group acquired a fifteen acre block of land at Waskaduwa, Kalutara during the period, in the South-Western coast of the island having pristine beach frontage.

“The company plans for a unique fivestar hotel in this location which would be considered as one of a kind in the country. This will be the second in the chain of hotels under Laugfs Leisure Ltd which will be operational in the season 2013/14. The first hotel in the chain is being constructed at Karukapone, Chilaw and its progress is on target and also expected to be commercially operational by the latter part of the financial year 2012/13,” the statement noted.