Laugfs Gas : Interim financial statements for the quarter ended 31.12.2022

GROUP MANAGING DIRECTOR'S MESSAGE

Dear Shareholders,

We are pleased to submit with you the unaudited financial statements of LAUGFS Gas PLC for the quarter ended 31st December 2022 with a positive note. The Group achieved a profit after tax of LKR 2,050 million for the quarter under review in spite of adverse macro-economic environment. This is a remarkable achievement almost after 07 years, with the maximum retail price (MRP) was in place have been lifted since October 2021.

However, the financial result of LAUGFS Gas PLC for the period under review was impacted with further escalation of interest rates charged by the respective banks with the corresponding policy rate increased from time to time. The aggregate finance cost incurred by the LAUGFS Gas PLC during the 2nd quarter ended 30th September 2022 was LKR 1,570 million has increased to LKR 1,717 million during the quarter ended 31st December 2022.

However, you will note that the significant reduction in loan portfolio by the group during the period under review by way of settlement of bank debts from the sale proceeds received from LAUGFS Gas (Bangladesh) Limited with its ownership disposal. Nevertheless, a Dollar against Rupee depreciation resulted an increase in rupee liability by LKR 4.6 billion (4,600 Mn) during the period under current financial year.

The management of the company is actively engaged with, in pursuance of strategic options for the reduction of debt exposure towards the financial institutions and is confident of achieving positive outcomes in the coming months.

(Sgd).

Piyadasa Kudabalage

Group Managing Director/GCEO

13th February 2023

LAUGFS GAS PLC

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the Quarter ended 31 December 2022

	Quarter ended 31 December		Nine Months ended 31 December		Year ended 31
			March
	Unaudited			Unaudited			Audited
	2022	2021	Change	2022	2021	Change	2022
Continuing Operations	Rs.'000		Rs.'000	%		Rs.'000		Rs.'000	%		Rs.'000
Revenue	7,808,350	5,641,322	38	15,893,161	21,340,330	(26)	24,023,408
Cost of Sales	(5,256,864)		(5,675,559)	(7)		(11,572,965)		(22,205,631)	(48)		(24,975,767)
Gross Profit/ (Loss)	2,551,486	(34,237)	(7,552)	4,320,196	(865,301)	(599)	(952,359)
Other Operating Income	93,087	89,044	5	215,713	316,661	(32)	392,933
Selling and Distribution Expenses	(120,069)	(72,117)	66	(293,573)	(262,191)	12	(341,292)
Administrative Expenses	(202,291)	(212,859)	(5)	(597,854)	(599,722)	(0)	(778,503)
Foreign Currency Exchange Gain/(Loss)	(34,822)	196	> (100)	(650,973)	(25,117)	2,492	(841,498)
Fair Value Gain on Investment Properties	-		-	-		-		-	-		600,508
Operating Profit/ (Loss)	2,287,391	(229,973)	(1,095)	2,993,510	(1,435,670)	(309)	(1,920,212)
Finance Cost	(1,716,896)	(564,226)	204	(4,357,268)	(1,527,907)	185	(2,201,805)
Finance Income	10,953	560	(1,857)	22,014	1,968	1,018	2,946
Gain on Disposal of Investment in Subsidiary	4,180,763		-	> 100		4,180,763		-	> 100		-
Profit /(Loss) Before Tax	4,762,211	(793,639)	(700)	2,839,020	(2,961,609)	(196)	(4,119,070)
Income Tax Expense	(285,405)	38,222	847	(135,272)	329,281	(141)	498,074
Profit/(Loss) for the Period from Continuing Operations	4,476,806	(755,417)	693	2,703,747	(2,632,327)	203	(3,620,996)
Discontinued Operations:
Profit After Tax for the Period from Discontinued Operations	79,888	(223,225)	136	(654,077)	(198,847)	(229)	(361,477)
Profit/(Loss) for the Period	4,556,695	(978,642)	(566)	2,049,670	(2,831,174)	(172)	(3,982,473)
Attributable to:
Equity Holders of the Parent	4,582,397	(980,694)	(567)	2,072,123	(2,837,177)	(173)	(4,077,068)
Non-Controlling Interests	(25,703)	2,052	(1,353)	(22,453)	6,003	(474)	94,595
	4,556,695	(978,642)	(566)	2,049,670	(2,831,174)	(172)	(3,982,473)
Earnings Per Share :
Basic/Diluted (Rs.)	11.84	(2.53)	(567)	5.35	(7.33)	(173)	(10.54)
attributable to Ordinary Equity Holders of the Parent

Note : Change % column represents the percentage change in current period's results compared to previous period

The above figures are subject to audit.

Figures in brackets indicates deductions.

The accounting policies and notes on pages 12 to 17 form an integral part of these financial statements.

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LAUGFS GAS PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the Quarter ended 31 December 2022

	Quarter ended 31 December		Nine Months ended 31 December	Year ended 31
		March
	Unaudited				Unaudited		Audited
	2022			2021		Change	2022	2021	Change	2022
	Rs.'000	Rs.'000	%	Rs.'000		Rs.'000	%	Rs.'000
Profit/(Loss) for the Period	4,556,695			(978,642)		(566)	2,049,670	(2,831,174)	(172)	(3,982,473)
Other Comprehensive Income
Other Comprehensive Income to be Reclassified to Profit or Loss in
Subsequent Periods (Net of Tax) :
Transfer of Translation Reserve on Disposed Foreign Subsidiary	(4,022,535)			-		> (100)	(4,022,535)	-	> (100)	-
Foreign Exchange Translation Differences	344,166			22,856		1,406	236,314	6,547	(3,510)	2,816,846
Net Other Comprehensive Income to be Reclassified to Profit or	(3,678,369)			22,856		> (100)	(3,786,221)	6,547	> (100)	2,816,846
Loss in Subsequent Periods
Other Comprehensive Income not to be Reclassified to Profit or Loss
in Subsequent Periods (Net of Tax) :
Gains/(Losses) on Financial Assets at FVTOCI	(763)			19		(4,100)	(3,051)	(1,341)	127	(7)
Actuarial Gains/(Losses) on Defined Benefit Plans	-			-		-	-	-	-	21,630
Gain on Revaluation of Property, Plant & Equipments	-			-		-	-	-	-	8,491,187
Income Tax Effect	-			-		-	-	-	-	(1,703,728)
Net Other Comprehensive Income not to be Reclassified to Profit	(763)			19		(4,100)	(3,051)	(1,341)	127	6,809,082
or Loss in Subsequent Periods
Other Comprehensive Income for the Period Net of Tax	(3,679,132)			22,876		> (100)	(3,789,271)	5,205	> (100)	9,625,928
Total Comprehensive Income for the Period Net of Tax	877,563			(955,767)		(192)	(1,739,601)	(2,825,969)	(38)	5,643,455
Attributable to:
Equity Holders of the Parent	903,266			(957,818)		(194)	(1,717,148)	(2,831,972)	(39)	5,548,542
Non-Controlling Interests	(25,703)			2,052		(1,353)	(22,453)	6,003	(474)	94,913
	877,563			(955,767)		(192)	(1,739,601)	(2,825,969)	(38)	5,643,455

The accounting policies and notes on pages 12 to 17 form an integral part of these financial statements.

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LAUGFS GAS PLC	0.00	0.31	(0.00)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2022
		Unaudited		Unaudited		Audited
		As at		As at		As at
		31.12.2022	31.12.2021	31.03.2022
ASSETS	Rs.'000		Rs.'000		Rs.'000
Non-Current Assets
Property, Plant and Equipment	36,995,629	25,956,867	42,010,483
Right-of-use assets	1,521,848	914,259	1,296,282
Investment Properties	3,480,507	2,877,707	3,480,507
Intangible Assets	19,238	2,863,153	4,356,541
Non-Current Financial Assets	15,444	21,050	18,495
Deferred Tax Assets		-		111,404		-
		42,032,665		32,744,440		51,162,308
Current Assets
Inventories	1,463,296	1,913,796	1,940,664
Trade and Other Receivables	2,619,094	3,422,627	3,419,979
Prepayments	301,599	79,393	170,752
Income Tax Recoverable	183,686	184,530	183,213
Other Current Financial Assets	9,948	61,028	14,254
Cash and Short-Term Deposits		3,051,197		515,383		811,427
		7,628,819		6,176,757		6,540,288
Total Assets		49,661,484		38,921,197		57,702,596
EQUITY AND LIABILITIES
Capital and Reserves
Stated Capital	1,000,000	1,000,000	1,000,000
Fair value Reserve of financial assets at FVTOCI	(24,869)	(23,153)	(21,818)
Foreign Currency Translation Reserve	507,765	1,483,686	4,293,985
Revaluation Reserve	6,010,048	711,968	7,474,519
Accumulated Losses		(3,594,611)		(5,937,534)		(7,131,205)
Equity attributable to Equity Holders of the Parent	3,898,332	(2,765,033)	5,615,481
Non-Controlling Interests		551,159		484,702		573,612
Total Equity		4,449,491		(2,280,332)		6,189,093
Non-Current Liabilities
Interest Bearing Loans and Borrowings	20,846,910	14,839,964	16,842,373
Employee Benefit Liability	94,453	191,229	197,499
Refundable Deposits	2,065,263	2,422,363	2,514,995
Deferred Tax Liability		636,967		-		1,386,233
		23,643,593		17,453,556		20,941,100
Current Liabilities
Trade and Other Payables	5,288,898	3,883,494	6,355,072
Interest Bearing Loans and Borrowings	16,030,406	19,227,359	23,326,333
Refundable Deposits	229,474	245,478	241,162
Income Tax Payable		19,622		391,643		649,837
		21,568,400		23,747,973		30,572,404
Total Equity and Liabilities		49,661,484		38,921,197		57,702,596
Net Assets Per Share (Rs.)	10.07	(7.14)	14.51
Note: The above figures are subject to audit.

I certify that these financial statements are in compliance with the requirements of the Companies Act No :07 of 2007.

(Sgd).

Channa Gunasekera Director - Group Finance

The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board by:

(Sgd).	(Sgd).
W. K. H. Wegapitiya	U. K. Thilak De Silva
Director	Director
13th February 2022
Colombo
The accounting policies and notes on pages 12 to 17 form an integral part of these financial statements.

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