Sri Lanka IOC unit in the red in June 2017 quarter

ECONOMYNEXT – Lanka IOC, a unit of Indian Oil Corporation, reported losses of 135 million rupees in the June 2017 quarter, down from profits of 1.9 billion rupees, amid higher oil prices and price controls.

The firm reported losses of 26 cents per share.

The loss, however, has narrowed from 652 million rupees (797 million rupees pre-tax) in the March quarter.

Revenues rose to 20.4 billion rupees in the June quarter from 18.9 billion rupees, but costs rose sharply to 19.8 billion rupees from 3.2 billion rupees.

Operating profits fell to 277 million rupees from 2.26 billion rupees.

Oil prices started to rise from the second month of 2016, and Sri Lanka still controls prices. However, taxes are sometimes adjusted to help oil distributors. Under a deal wtih the International Monetary Fund, market repricing is expected next year.

Lanka IOC is the country’s second-largest fuel distributor after state-run Ceylon Petroleum Corporation.

LIOC also has revenues from other areas like lubricants. (Colombo/Aug11/2017)

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