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Haycarb Limited, the Hayleys Group's multinational activated
carbon manufacturing company has emerged from the adverse
conditions that retarded its performance last year to post a
modest profit at the end of the first half of 2006.
In results released to the Colombo Stock Exchange this week, the
company reported profit after tax of Rs 34.9 million, in a
welcome contrast to the Rs 118.5 million loss incurred in the
corresponding six months of last year. Turnover for the six
months ending September 30, 2006 was up 31.2 percent to Rs 1,633
million.
Profit attributable to equity holders of the parent company was
Rs 19.2 million against a loss of Rs 132.3 million at the end of
the first half of 2005.
The world's biggest exporter of coconut shell based activated
carbon, Haycarb was hit by raw material shortages due to a drop
in domestic coconut production during much of last year and the
high prices of charcoal, its main raw material. The post-tsunami
strength of the Rupee against the US Dollar also negatively
impacted on its bottom line.
To retain customers overseas and operate its plants at higher
capacity, charcoal had to be imported, despite the fact that
inward freight costs eroded the difference between prices of
local and imported charcoal.
Commenting on the company's improved performance, Haycarb
Managing Director Ananda Hettiarachchy said: "Although there is
a significant shift from the results of the previous year, the
performance is still well below expectations." The main reason
for this is that prices of charcoal in the local market remain
high, almost double the price in countries like Indonesia and
the Philippines, he explained. Charcoal costs around Rs 20,000 a
ton to the five local producers in Sri Lanka, with the advent of
a new foreign competitor, who took the price even up to
Rs.28,000, in contrast to US $ 110 - 120 in other activated
carbon producing countries, Mr. Hettiarachchy disclosed.
He said three tons of charcoal is required to produce a ton of
activated carbon, and the high price of raw material in Sri
Lanka gives producers in other countries a significant
advantage.
He added that while it was encouraging to note that the company
is recovering from a difficult 2005, it continues to grapple
with the imbalance in charcoal prices. This would be offset to
some extent when Haycarb's activated carbon facility in
Indonesia achieves its full capacity next year, adding to
capacity already established outside Sri Lanka, in Thailand.
Incorporated in 1973, Haycarb is the pioneer manufacturer of
activated carbon in any coconut producing country, and today is
the world's largest coconut shell based activated carbon
manufacturer, with an installed capacity of more than 22,000 MT
per annum, 17 percent of global production. The company operates
production centres in Sri Lanka, Thailand and Indonesia and its
product range covers standard, washed, and impregnated carbons
in granular, pellet and powder form.
The Board of Directors of Haycarb Limited comprises Messrs R.
Yatawara (Chairman), N. G. Wickremeratne, A. Hettiarachchy
(Managing Director), L. P. Jayasinghe, R. P. Peris, L. K. B.
Godamunne, Dr. D. G. K. E. Weerapperuma, H. M. A. Jayesinghe and
A. M. Senaratna. |