City: Calor Gas profits heat up by 62pc despite dip in turnover
By Robina Gibb
CALOR Gas, the UK's leading supplier of bottled liquefied petroleum gas, which is 49pc
owned by Dutch conglomerate SHV, yesterday reported that it had achieved a 62pc rise in
pre-tax profits to £51.5m in 1993.
The increase was achieved despite a 5pc dip in turnover to £295.9m, following Calor 's
decision to squeeze its profit margins to "give customers more competitive and stable prices",
said chief executive Howard Robinson.
Calor now sells half as much as it did a decade ago, squeezed by increasing competition in the
market for its two main LPG products, butane and propane.
The results reflect the absence of any exceptional charges, which in 1992 totalled £14.8m after
1,000 jobs were axed, slicing the workforce by a third. The company described as "very promising" its 20pc stake in Pam Gas, the Vienna-based business which is exploiting opportunities in Poland, Slovakia and Hungary, although the company has not yet contributed to the bottom line.
Calor 's move into the natural gas market in February-through a link with Alliance Gas, owned by British Petroleum and Statoil of Norway-will show "negligible" short-term profit until the
domestic market is opened to competition in 1996, Mr Robinson said.
At the moment Calor can only supply natural gas to bulk users.
The only area where Calor lost money was in its new Air Separation Division, which posted an operating loss of £3.2m.
The division supplies a carbon dioxide and nitrogen dispensing system to regional brewers andpub chains that "makes a nice creamy head of beer and stops it bubbling all over the place when dispensed at the bar", said Mr Robinson.
To date, Calor has sold to 3,000 outlets out of a potential 100,000 who still use the traditional
carbon dioxide system.
Earnings per share were 19.5p, up from 12p.
A final dividend per share of 6.5p is payable on July 1, making a total of 12.5p against 12p last time.
