LAUGFS Gas wants to strike South Asian regional partnerships in energy sector
LAUGFS Gas PLC plans to collaborate with its suppliers’ partners in a bid to trade LP Gas and oil in the South Asian region, officials said.
“This will be more of a trading partnership and we are looking to enter countries in the South Asian region,” W.H. K Wegapitiya, Chairman LAUGFS told the Business Times on the sidelines of its annual general meeting last month. He added that it is difficult to enter most markets in this sector. “We are seriously looking the nitty-gritty of this operation.”
Pic from left shows W.H.K. Wegapitiya, Chairman LAUGFS, Thilak de Silva, Group MD LAUGFS and Ashan de Silva, CEO LAUGFS Gas at the AGM
He said that a LAUGFS team was in Dubai in order to work out the possibility of this operation with their suppliers. “LP Gas is not an “on-purpose” product like crude or other petro-chemicals. It is a processed product from associated gas (from crude oil wells) non-associated gas (from gas wells) and process of refining. Therefore, LP Gas production depends on the changes in these industries.
Also the influence of these industries, on supply of LP Gas, varies considerably by region because of the dependence on sources,” he explained. The supply in Asia is mostly linked to refining, in the Middle East. Supply is linked mostly to associated gas with a growing linkage to non associated gas, whilst North America is essentially linked to non-associated gas, Mr. Wegapitiya said, noting that the company is exploring all these aspects in its decision to enter countries in the South Asian region.
LAUGFS Gas PLC saw its group revenue for the year under review cross the Rs.10 billion mark to reach Rs.10.6 billion. “It is a landmark for the group of companies in its comparatively short history of business operations,” Mr. Wegapitiya said.
The pre-tax profit of the group recorded Rs.1.3 billion, which is 29 per cent over the previous financial year.
The Board of Directors having considered the financial performance, decided to declare a first and final dividend of Rs.1.50 per share for the financial year ended 31st March 2013.
The LP Gas industry globally is in the midst of a profound structural change as new sources of supply compete for market share, and as a cleaner source of energy take a greater share of primary energy consumption, Mr. Wegapitiya said.
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