Sri Lankan energy company LAUGFS Gas PLC has reported a sharp deterioration in its quarterly financial performance, as falling domestic gas sales and the absence of overseas trading revenue pushed its net loss up by 88 per cent to Rs 1.54 billion.
Interim financial statements released in Colombo for the three months ended 30 September 2026 show the group’s bottom line weakened substantially from a net loss of Rs 818.2 million during the corresponding period last year, pushing basic loss per share to Rs 3.99 from Rs 2.14.
The earnings slump followed a 57 per cent contraction in quarterly group turnover, which dropped to Rs 5.71 billion from Rs 13.16 billion a year earlier.
This decline stemmed largely from zero external revenue from the company’s Dubai-based energy trading subsidiaries, SLOGAL Energy DMCC and LYNQ Energy FZCO, which had contributed more than Rs 6.7 billion in external sales during the previous year’s September quarter.
Domestically, parent company revenue from liquefied petroleum gas operations fell 28 per cent to Rs 4.62 billion from Rs 6.42 billion due to local supply disruptions.
Squeezed profit margins compounded the revenue shortfall across the group. While overall cost of sales decreased by 52 per cent to Rs 6.18 billion from Rs 12.75 billion, parent company cost of sales dropped by only eight per cent despite significantly lower sales volumes.
The company reversed a gross profit of Rs 408.0 million from the previous year to post a gross loss of Rs 470.9 million, while group operating performance swung from a profit of Rs 11.5 million to a loss of Rs 703.8 million.
Rising debt servicing costs further weighed on the balance sheet, with finance expenses increasing 13 per cent to Rs 789.4 million as short-term borrowings expanded to Rs 24.85 billion from Rs 17.19 billion a year ago.
Although administrative costs edged up five per cent to Rs 292.5 million, selling and distribution expenses fell 44 per cent to Rs 119.8 million on reduced dispatch volumes, and income tax expenses declined 53 per cent to Rs 69.0 million.
Currency movements delivered mixed outcomes across the accounts.
Net foreign exchange gains climbed 295 per cent to Rs 91.4 million from Rs 23.2 million, shielding quarterly earnings from local exchange rate pressures.
However, foreign exchange translation differences on overseas subsidiaries recorded under other comprehensive income swung to a loss of Rs 122.3 million from a gain of Rs 126.4 million last year, widening the total comprehensive loss by 157 per cent to Rs 1.67 billion.
Accumulated losses have eroded group equity to negative Rs 4.33 billion against total assets of Rs 43.86 billion as at 30 September, leaving net asset value per share at negative Rs 12.88.
Regulatory filings note that parent entity LAUGFS Holdings retains a 74.02 per cent voting stake alongside a public float-adjusted market capitalisation of Rs 3.70 billion, with no material post-reporting events recorded.
