Sri Lanka: IOC Subsidiary Returns to Profit
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Thursday, 18 February 2010 |
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Lanka IOC has announced that it made a profit in the Q3 compared with a
loss a year ago on higher petrol prices and other products like marine
fuel and lubricants.
Lanka IOC said in a stock exchange filing that net profit for the
December quarter was 12 million rupees compared with a loss of 770
million a year ago. Turnover in the December quarter rose 1.5
percent to 13 billion rupees from a year ago with sales of petrol and
diesel down but marine fuel sales up sharply. Other operating income
doubled to 264 million rupees mainly because of a dividend from Ceylon
Petroleum Storage Terminals Limited, a common user storage facility
partly owned by LIOC.
LIOC managing director K R Suresh Kumar said he expects the company to
do better in the next quarter. “It was a nominal profit. During the
December quarter our selling prices had been slightly better. Earnings
from lubricants and bunkers (marine fuel) also helped.” Sales of
petrol and diesel fell in the quarter as supplies were disrupted by
labour union action at the state-owned oil refiner, Ceylon Petroleum
Corp., while marine fuel sales increased sharply.
Suresh Kumar said he expects the next quarter to be better with the
government having removed a customs duty charged on LIOC along with the
cut in petrol prices. “The reduction in selling price has been
matched by the duty being taken off. From this quarter onwards things
will be better as there is a general improvement in the economic
climate which should help volumes to grow.” LIOC has captured a
35-percent market share, he said.
PetrolWorld 170210
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