Sri Lanka’s IOC unit Sep profits grow on low crude prices

ECONOMYNEXT- Net profits at the Sri Lankan unit of the Indian Oil Company grew 150 percent to 517.4 million rupees in the September quarter, the firm’s interim financial report showed.

Lanka IOC said it posted 97 cents in earnings per share. For the six months ended in September, it had 52 cents in earnings per share. Lanka IOC share closed 20 cents down at 16.80 rupees on Friday.

Revenue for the quarter fell 16 percent to 21.5 billion rupees, while cost of sales fell 17.6 percent to 19.8 billion rupees, leading to gross profits growing 5.6 percent to 1.6 billion rupees.

Falling oil prices, despite a weakening Sri Lankan rupee contributed to a fall in cost of sales.

Lanka IOC’s finance income grew 45.6 percent to 226.7 million rupees while finance costs fell 48.5 percent to 281.5 million rupees.

The firm’s short-term borrowings grew to 11.1 billion rupees as at end-September, from 2.3 billion rupees at end-March.

Its short-term investments grew to 11.8 billion rupees from 673 million rupees during the six months. (Colombo/Oct25/2019)