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Lanka Marine Services posts 20% growth in bunker sales volume

31 Jul 2018

Colombo-listed John Keells Holdings PLC, the parent firm of Colombo-based bunker supplier Lanka Marine Services (LMS), posted a 26% decrease in net profit for its first quarter ended 30 June (Q1) of 2018.

It recorded net profit of LKR 2.22 billion (USD $13.97 million) in Q1 2018, a decrease from net profit of LKR 3.02 million in Q1 2017, according to its financial statement.

Revenue in Q1 2018 was LKR 30.16 billion, 12% more than revenue of LKR 26.82 billion in Q1 last year.

Its transportation business, which includes LMS, posted profit of LKR 826.02 million in Q1 2018, an increase of 4% over LKR 773.08 million during the first quarter of the previous financial year.

“The increase in profitability is mainly attributable to the performance of the Group’s Bunkering, and Ports and Shipping businesses,” said Chairman Susantha Ratnayake.

He noted the Port of Colombo witnessing a year-on-year growth of 15% and South Asia Gateway Terminals (SAGT) recording a growth in throughput of 25% during the comparative period.

“Profitability of the Group’s Bunkering business, Lanka Marine Services, increased as a result of a volume growth of 20% and improved margins,” he added.

“During the quarter, LMS commissioned “MT Amelia”, further enhancing LMS’s overall storage capacity and delivery efficiency.”

LMS pointed out of “strong opportunities for private bunkering service providers” at the port of Hambantota in a separate presentation.

“The Port will occupy an area of 1,815 hectares and have a capacity to accommodate 33 vessels at a time,” it explains.

“[It is also] Positioned within 10 nautical miles of the world’s busiest shipping lanes in which 200 to 300 ships sail through on a daily basis.”

Elsewhere, the group’s leisure and property businesses posted respective net loss of LKR 276.33 million and loss of LKR 5.86 million during Q1 2018.

Related: Sri Lanka: JKH posts double digit growth in bunkering

Published: 31 July, 2018

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