Lanka IOC posts net profit

Lanka IOC, the wholly-owned subsidiary of Indian Oil Corp. declared a net profit of LKR 277.8 million (US$2.4 million) for the quarter that ended on September 2011, against a LKR 501.5 million (US$4.3 million) profit in the same quarter last year. The positive margins were from sales of petrol, lubricants, bitumen and bunker fuel. However, the company continues to lose on the sale of diesel fuel. K.R. Suresh Kumar, Managing Director of Lanka IOC explained, “Lanka IOC continues to lose on the sales of diesel. Total revenues were higher during April-September this year compared to last year due to higher sales of all products other than diesel,” he said. Lanka IOC’s decision to hike diesel prices resulted in an 80% drop in sales, although the company’s move was later on negated when the Sri Lankan government increased the prices of petrol by LKR 12 (US$0.10) per liter, and the price of diesel fuel by LKR 8 (US$0.07) per liter on October 31. (November 22, 2011)