Sri Lankan shares end higher ahead of polls

Reuters: Sri Lankan shares ended firmer on Friday on hopes that political stability after the Aug. 17 parliamentary elections would help boost investor sentiment, brokers said.

The main stock index ended up 0.26 percent at 7,462.34, hovering near its highest close since Jan. 16 hit on Wednesday.

The day's turnover stood at 1.25 billion rupees ($9.34 million) on Friday, slightly higher than this year's daily average of 1.13 billion rupees.

Foreign investors were net buyers for the first time in 11 sessions. They bought a net 113.3 million rupees worth of equities on Friday. But they have offloaded a net 1.09 billion rupees worth of shares so far this year.

"We were expecting market to be slow today as well, but it didn't happen. Everybody is in a positive mood on expectation of a stable government after the election," said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd.

Shares in Commercial Bank of Ceylon Plc rose 1.63 percent, while Lanka IOC Plc jumped 9.28 percent, pushing the index higher. 

($1 = 133.9000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

Janashakthi Insurance posts Rs 200 m net profit in 1H

Janashakthi Insurance PLC posted a year-to-date Gross Written Premium (GWP) of Rs.4.9 billion upto June 30, 2015, a 15% growth year-on-year, to end the first half of the year with after tax profits of Rs.200 million.

The company registered a 21% growth in GWP in the life insurance segment on the back of a remarkable increase of 48% in First Year Life Premiums, the highest recorded since it set out on a strategic drive to transform this business. The GWP for general (non-life) insurance segment grew by 13%.

Janashakthi posted these impressive numbers while continuing to honor its commitment to policy holders.

The insurer settled claims totaling Rs.2.2 billion across life and non-life categories at the end of first half, 2015 of which Rs.1.2 billion was disbursed in Q2, 2015.

"The double digit growth in Gross Written Premium alongside the Rs.1.2 billion claims payout in Q2, 2015 is a reflection of our mission of 'bringing hope and prosperity to all'.

We continue to maintain the growth momentum as we strive to offer greater returns to our shareholders while delivering on our promises to clients" Janashakthi Insurance Managing Director Prakash Schaffter said.

With a paid up share capital of Rs.1.496 billion, Janashakthi Insurance continues to reflect a healthy capital structure. Its asset base grew to Rs.22.18 billion in the first half, 2015 from Rs.20.87 billion as at year end 2014 while the Life Insurance Fund grew from Rs.7.3 billion as at year end 2014 to Rs.8.5 billion.

The company split into two entities, Janashakthi Insurance PLC (JIPLC) and Janashakthi General Insurance Limited (JGIL), in January 2015 in compliance with regulatory reforms.
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Chevron Lanka profitability up 8%

Chevron Lubricants Lanka's profitability has increased by 8% despite a sluggish industry. Company recorded net earnings of Rs. 2.7 billion in 2014, as compared to Rs. 2.5 billion in the previous year according to their 2014 annual report.

The growth in profit after tax recorded during the period under review can be attributed to operational excellence, tactical sales and marketing strategies said it's Chairman, Farrukh saeed.

This strong financial performance is a proud achievement, considering that our new blending plant at Sapugaskanda became operational in November 2014.

The commissioning of this plant will strengthen Chevron's supply chain capability to cater to demand from the domestic as well as export markets. Your Company received many internal accolades within the Chevron group for recording 4377 days of incident-free operations at the end of the year.

Company declared 4 interim dividends during the year amounting to Rs. 20 per share, compared to Rs. 15 per share in 2013.
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NDB profits top Rs 2b in 1H

NDB Bank and Group for the first half of 2015,has recorded a profit after tax PAT of Rs 2 billion for the first half of 2015.

This is a 7% Year-on-Year (YoY) growth as compared to June 30,2014.Total operating income of the Bank grew by 5% compared to H1 2014, to reach Rs 6,241 million.

NDB, Chief Executive Officer Rajendra Theagarajah said the Bank is resolute in its strategic growth momentum."

NDB has experienced considerable improvement in its share in the market, and will continue to grow its share through competitive and innovative product offerings and excellent customer service," he said.

Net Interest Income (NII) declined marginally by 3% due to the relatively low credit growth environment which prevailed in the country.

Net fee and commission income which is a primary contributor towards core-banking operations increased by 12% compared to the prior period. The Bank's Other operating income also increased by Rs 602 million, to reach Rs 1,044 million for the period, which included equity income of Rs 965 million as compared with Rs 431 million for the prior period.

At a Group level, total operating income declined marginally by 3% to reach Rs 6,136 million. The decrease was primarily due to the reduction in Net gains from NDB Group's total financial investments portfolio.However, NDB Group's Net fee and commission income recorded a significant growth of 28% over the prior period due to the increased performance of the fee based Group Companies.

The Bank's Impairment charges for loans and other losses for the first six months of 2015 was Rs 198 million, compared to Rs 222 million of 2014, a reduction of Rs 24 million which was primarily due to the improved quality of the Bank's loan portfolio.

Total operating expenses grew by 16%, an increase of Rs 411 million compared to the prior period.

The main cost driver during the period under review was 9 new branches which were added to the Bank's branch network.At a Group level, the operating expenses of Rs 3,280 million grew by 18% over the first half of 2014.
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Colombo Dockyard's profits dip

Colombo Dockyard PLC saw a dip in their profits according to their Annual Report 2014.

"We experienced space constraints for the ship repairs during the year, due to the construction of the two passenger vessels taking up nearly 25% of the yard space available for ship repairing," said Ranil Wijegunawardane, Managing Director/ CEO.

Nevertheless, the ship repair sector reported a marginal growth in 2014, against the previous year.

This sector is expected to show improved results in years to come with more space now available for ship repair work.

As a result of the unplanned cost overflows from the two passenger vessels discussed above, our revenue dropped by 14% against 2013. Our profitability plummeted by almost 75%, against 2013. We were also not able to offset the higher costs through rupee depreciation, as the rupee remained exceptionally stable throughout the year.

However, our profitable ship repair business contributed significantly towards alleviating the overall impact on profitability.

We closed the year with profits after tax at Rs 209.2 Mn, compared to Rs 823.7 Mn in 2013. The lower profitability of the Colombo Dockyard also weighed down Group profitability by 68.5% against the previous year.

Due to our continuing focus on improving workplace safety standards, I am happy to report a 36% reduction in accidents at work, during the year.
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