Piramal results good but concerns grow over furnace oil price issues
View(s):Piramal Glass Ceylon PLC, saying first quarter results were positive, pointed out this week that the “much awaited furnace oil price reduction did not happen during the quarter under review” impacting on its business.
In 2012 furnace oil rate which was Rs. 50 was increased by 80 per cent to Rs.90. At this time the crude oil price was in the range of US$110 – $120 but since then the crude oil barrel has reduced and presently is close to $60.
“Yet the furnace oil remains at Rs.80 whilst in the neighbouring country India the furnace oil rate is Rs.55–Rs.60 (INR 25 – 28). Of the total furnace oil generated in Sri Lanka only 10 per cent is consumed by the local industry and the balance 90 per cent is exported. The price of the exports is 30 per cent lower than what is charged to the local consumer. This state of affairs has affected our competitiveness in the international market as well,” the company said.
Piramal’s results for the 1Q2016 was Rs. 1,523 million in revenue and Rs. 147 million as post-tax profit, “showing a positive growth”. Total revenue generated during the quarter showed an overall growth of 22 per cent against the same quarter in 2014/2015.