ECONOMYNEXT- Lanka IOC, a unit of Indian Oil Corporation said its net profits were 890 million rupees in the December 2021 quarter, 29.5 percent up from 687 million rupees a year earlier.
The earnings per share were 1.67 rupees, while the firm’s share closed 1.10 rupee firmer at 68.10 rupees at the close of trading on Friday.
In the nine months to December, the company reported 2.71 rupees per share on total profits of 1.44 billion rupees, from a loss of 91.3 million rupees a year earlier.
Revenue for the December quarter was 23 billion rupees, up 38.5 percent from a year earlier, while the cost of sales was 21.1 billion rupees up 38.9 percent, leading to gross profits of 1.89 billion rupees, up 35.3 percent.
LIOC has about 10 to 15 percent of the fuel market in the country. It raised fuel prices in the quarter in line with the state-run fuel retailer in the wake of rising global oil prices.
LIOC had inventories of 18.4 billion rupees by December 2021.
Global oil prices have shown a rising trend in the December quarter.
LIOC’s net finance income went down to 316 million rupees in the December quarter from 361 million rupees in the previous year
The firm’s borrowings as of December 31, 2021, rose to 21.6 billion rupees from 20.6 billion rupees as at end March. 2021.
The shares in the LIOC has more than doubled in the quarter on speculation of the company’s increased role in Sri Lanka’s energy sector.
Early this month, the company entered into a joint venture agreement to invest in 49 percent shares of Trinco Petroleum Terminal (Pvt) Ltd, the JV company with state-owned Ceylon Petroleum Corporation, which holds the balance 51 percent.
The LIOC has entered into a deal to develop 61 oil tanks in Trincomalee China Bay Oil Tank Farm.
The firm has a dispute with tax authorities which is under litigation. The disputed amount is 1.98 billion rupees from 2012 up to December 2019 when Nation Building Tax was discontinued. (Colombo/Jan23/2022)