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Solid performances by its overseas manufacturing subsidiaries and the profits generated by a strategic disposal of investments has enabled Haycarb PLC, the Hayleys Group’s multinational activated carbon company to achieve a more than five fold increase in pre and post tax profits in the first half of 2007-08.

The company’s profit before tax for the six months ending September 30th 2007 grew 445 per cent over the first half of the previous year to Rs 213.3 million, according to figures released to the Colombo Stock Exchange last week.

Profit after tax for the period, at Rs 200 million reflected a growth of 472 per cent.

Turnover for the period reviewed increased by 23 per cent to Rs 2 billion indicating an overall improvement in operating conditions for the company.

Elaborating on these results, Haycarb Managing Director Ananda Hettiarachchy said the sale of investments during the quarter had contributed Rs 66 million to the results achieved.
“Even discounting this gain, the post tax profit growth achieved by the Haycarb Group is a noteworthy 284 per cent, and reflects the strong performance of all its manufacturing operations, especially those in Indonesia and Thailand,” he said.

Profit attributable to equity holders of the parent company grew from Rs 19.2 million for the first half of 2006-07 to Rs 177.9 million for the concluded half year, an increase of more than 800 per cent.

The Group’s improved performance was also reflected in its earnings per ordinary share, which increased from 65 cents as at September 30, 2006 to Rs 5.99 at the end of September 2007.

Haycarb was hit by raw material shortages due to a drop in domestic coconut production during much of 2005-06 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 in that period.

Haycarb’s globally-unique Recogen plant wins National Science & Technology Award

The world’s only pollution-free charcoaling plant that converts the energy released in the process into electricity, was recognised at national level last week with the top award in the ‘Development of Eco-materials/Eco-friendly Processes for Industry’ category at the National Science and Technology Awards.

Conceptualised and developed by Haycarb PLC and built by Recogen Ltd, its wholly-owned subsidiary, the plant at Badalgama converts coconut shell into charcoal in a mechanised process that uses ‘Pyrolysis’ (carbonisation in the absence of oxygen) and combusts the methane-rich gasses released, a major pollutant, to run a steam turbine that produces electricity for the national grid.

Designed as a backward integration to supply charcoal for Haycarb’s activated carbon manufacturing operations, the patented process replaces the environmentally hazardous traditional charcoaling pits, captures and uses volatile gasses that would otherwise enter the atmosphere, generates electricity and produces high-grade charcoal for its parent company.

Nearly ten years in research, development, engineering and operation, Recogen (derived from ‘Recover and Generate’) will by June 2009 represent an investment of Rs 1 billion. It will comprise of six charcoaling reactors that will produce 60 Tonnes of charcoal a day, generate 5 megawatts of power and earn the country Carbon Credits of 46,000 Tons a year under the Kyoto Protocol for the avoidance of methane and carbon dioxide emissions and the reduction of fossil fuel usage.
“Hayleys is justifiably proud of what Recogen represents and what it has achieved,” said Haycarb Managing Director Ananda Hettiarachchy who accepted the National Science and Technology Award from Prime Minister Ratnasiri Wickremanayake on Saturday, November 10. “It is a perfect example of sustainable industry, and the fact that it is the only plant of its kind on the planet is testimony to the ingenuity and engineering ability of our people.”

He said the primary justification for the project is to ensure the continuance of the Activated Carbon Industry, which brings in more than Rs 2000 million per annum as foreign exchange in to Sri Lanka, by guaranteeing its raw material supply. Sri Lanka currently produces 45,000 Tons of coconut shell charcoal a year in about 300 open pits in the North Western Province. This process leads to air, water and soil pollution and is therefore a health hazard. It also results in a waste of energy. The Recogen plant in its third and final stage will produce 19,800 Tons of pollution-free coconut shell charcoal, enabling a phasing out of the crude pit method, which releases an estimated 2000 Tons of harmful methane into the atmosphere.