ECONOMYNEXT- Lanka IOC, a unit of Indian Oil Corporation said its net profits were 9.9 billion rupees in the June 2022 quarter, up from 273 million rupees in the same quarter a year earlier due to higher operating profits.
The earnings per share were 18.64, while the firm’s share closed 4.63 percent firmer at 113.00 rupees at the close of trading on Friday.
Revenue for the June quarter was 49.9 billion rupees, up 196.7 percent from a year earlier, while the cost of sales was 34.4 billion rupees up 115.2 percent, leading to gross profits of 15 billion rupees, up 1,701 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 due to sharp depreciation of the currency coupled with high global prices.
LIOC total assets increased by 4.9 billion rupees to 70 billion rupees by June 2022.
LIOC finance income in the June quarter increased to 436 million rupees, up 24 percent from a year earlier and Finance expenses increased to 1.7 billion rupees from 122 million rupees resulting a price before tax of 11.8 billion rupees.
The price of LIOC shares has more than tripled in the quarter on speculation of the company’s increased role in Sri Lanka’s energy sector.
The firm also entered into joint venture agreement with the state owned Ceylon Petroleum Corporation in January, to invest in 49 percent shares of Trinco Petroleum Terminal (Pvt) Ltd, the JV company.
The LIOC has entered into a deal to develop 61 oil tanks in Trincomalee China Bay Oil Tank Farm.