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Piramal Glass profits up 2.7 fold in Dec; wants pricing formula for furnace oil


Feb 01, 2016 (LBO) – Sri Lanka’s Piramal Glass Ceylon said profits in the quarter to December 2015 rose more than two fold to 166 million rupees from 61 million a year earlier despite concerns about the cost of Furnace oil.
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The firm which makes glassware saw revenues grow 11.
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6 percent to 1.78 billion rupees according to unaudited accounts filed with the Colombo Stock Exchange.
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Domestic sales has contributed 78 percent of the total quarter’s sale as compared to 70 percent of the previous year same period. Gross profits rose at a faster 84.
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3 percent to 396.8 million rupees. Finance costs fell 47.2 percent to 17.5 million rupees. The firm said earnings were 18 cents per share for the quarter up from 06 cents per share a year earlier.
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For the nine months earnings were 48 cents per share.
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“The cost of Furnace oil, the main energy source in manufacturing glass still remains a very grave concern,” the company said. “The price which was set at Rs. 90/= per litre in 2012, has not yet been corrected in line with the decreasing world crude oil prices,” “The company has taken up this issue with the present government at various occasions and forums as it is an injustice to the industry.” Presently the furnace oil supplied by Ceylon Petroleum Corporation is at 80 rupees per litre whereas the company says by any standards the price charged by CPC should not be more than 45 rupees per litre. “We appreciate the government’s move towards having a pricing formulae for fuel products and hope furnace oil too would be considered under the formulae pricing linked with global crude oil prices.
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” The company’s Furnace which was built in 2007 is due for refurbishment and relining during 2017. The relining together with enhancement of capacity and technological improvements to the existing machinery is scheduled to be carried at an investment of 3 billion rupees during next Financial Year.
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Piramal Glass Ceylon formerly known as Ceylon Glass Company is the only glass bottle manufacturing plant in Sri Lanka.
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