May, 16, 2019
The Sri Lanka unit of the India owned and controlled Lanka Indian Oil Company (LIOC) latest results for the quarter ended from January to March 31st 2019 highlights that company’s net profits reported amounts Rs. 938 million, which is up from a Rs. 103 million loss from a year earlier during the same corresponding period. The profits reflects that the price-reflective formula that was in place, compared to a year earlier, when the government was implementing fixed prices has largely benefitted the move for India’s Oil company LIOC which has recorded a revenue for the quarter ended March 31st 2019 amounting to Rs. 18.5 billion, down 22.2% from a year earlier, which was Rs. 23.8 billion. Further company’s cost of sales has also fallen from Rs. 23.7 billion a year earlier to Rs. 17.1 billion reporting a 27.9% drop of sales volumes.
Global Oil prices had crashed in November and December 2018 after the US said it would not impose sanctions against Iran trading oil, and prices had remained below the previous year in the months since. Further the results highlight that LIOC’s borrowings as at March 31, 2019 fell to Rs. 2.3 billion from Rs. 5 billion rupees a year earlier. However company’s assets fell to Rs. 28.2 billion from Rs. 32.9 billion with the unwinding of short-term investments, although the firm was seen stockpiling low-priced oil.
- Reporting by Devendra Francis