Sri Lanka’s LIOC performs strongly during Q1 22-23 with increase in revenue by nearly 196% Y-o-Y .
Notwithstanding the many challenges faced by Sri Lanka at present, the Lanka Indian Oil Company’s (LIOC’s) performance during the Q1 22-23 has been remarkable with an increase in revenue by nearly 196% Y-o-Y from Rs. 16.86 billion to Rs. 49.93 billion mainly on account of high cost of product, in view of steep rise in international oil prices.
The Company has stated that its sales volume has also increased to 139,762 MT from 135,354 MT on a Y-o-Y basis. It has further stated that the Net Profit after Tax at Rs. 9.93 billion, the Earnings per share of the company increased to Rs. 18.64 in Q1 22-23 as against Rs. 0.51 in Q1 previous year reflecting Q1’s robust performance. LIOC Managing Director Manoj Gupta has been quoted as saying, “The company ventured into a new line of business of selling diesel directly to export houses, tourism services providers registered under Sri Lanka Tourism Development Authority, licensed telecommunication service providers and Power Generation Companies, against remittance in dollars. The collection in $ eliminated the exchange rate risk and allowed sale of fuel to industries at a predetermined price.
“On the other hand, it met the essential fuel requirement of innumerable industries which are responsible for the livelihoods of millions of employees and their dependent family members. It is beyond imagination to believe the repercussions in case fuel requirements were not met on time. “I am so indebted to my workforce at Trincomalee Terminal who had had round the clock operation of the terminal for more than three weeks with limited resources to supply fuel not only to industries but also to ensure supply of 7500 MT of diesel to CPC for onward dispatches for essential services. Company’s Bunkering business has registered strong exceptional performance, the main contributor has been the exchange gain in view of depreciation of currency, as the sales take place in $.” “The revision in Retail Prices (RSP) for auto-fuel in line with the pricing formula has been beneficial for the company. RSP revisions played a crucial role in circumventing the price volatility in the international oil market to a large extent. The bottom-line of the company has also been transformed by exceptional performances by Lubricants, Petrochemicals and Bitumen. We are extremely grateful to CBSL authorities and Ministry of Power and Energy, GoSL for their continuous support,” Gupta has added.
OSL take:
Sri Lanka’s energy industry is fast becoming a hotspot for business/investment opportunities given the ongoing power and energy crisis in Sri Lanka. The performance of LIOC in Sri Lanka’s energy market is a clear indication of the growing business potential in the country’s local energy market. The government of Sri Lanka has also decided to open up the country’s fuel market by inviting interested foreign businesses to engage in fuel sale in the local market. Already around 40 business entities have expressed interest in entering the local fuel market. Therefore, while exploring the possibilities of supplying fuel to the local market, foreign businesses could also explore the opportunities in entering Sri Lanka’s fuel sales market. Given the ongoing economic activities and the growing demand, businesses engaged in Sri Lanka’s energy industry would be assured of definite returns.
| Article Code : | VBS/AT/17082022/X_2 |