LIOC records Rs 623 m net profit

Sanjeevi JAYASURIYA

Lanka Indian Oil Company (LIOC) has performed well despite the fluctuation in the prices of its core products, recording Rs 623 million profit for the Q3.

“We have recorded a net profit of Rs 623 million in Oct-Dec’11 compared to Rs 602 million during the period Oct-Dec’10. This has been achieved despite suffering losses in the core area of business of retail marketing of diesel through petrol sheds.

“Profits have been realized in lubricants, bunker and bitumen sales which added to the bottom line. The company is looking to step up the sales of these products in sustaining the positive performance,” LIOC Managing Director K R Suresh Kumar told Daily News Business.

Due to a drop in the sales volume for the last quarter to 141,754 KL from 162,886 KL, a negative growth of 19 percent, the sales value increased to Rs 15,419 million from Rs 13,405 million was recorded.

“We were able to record improved performance. The expected better performance for the fourth quarter will enable to end the year on a positive note,” he said.

The Government of Sri Lanka (GOSL) revised the selling price of petrol from Rs 125 per litre to Rs 137 per litre and selling price of diesel from Rs 76 per litre to Rs 84 per litre effective October 31, 2011.

This helped to cut down the losses to an extent. However loss on diesel was Rs 21 per litre even after the price revision.

International prices started increasing from Jan’12 , which made the revision mentioned above ineffective.

Hence GOSL once again revised the selling prices effective February 2, 2012 to Rs 149 per litre for petrol and Rs 115 per litre for diesel. The effect of this will be seen in Quarter 4 Jan-Mar’12, Kumar said.