Lanka IOC posts Rs 3.37 bn quarterly net profit for 2022

Lanka IOC has posted a net profit of Rs 3.37 billion for the March 2022 quarter. This is nearly a 250% increase against the profits of Rs. 968 million recorded in the same quarter in 2021.

An entity of Indian Oil Corporation said that its revenue for the December quarter was Rs 29 billion which is also a 42% increase as against the same quarter in 2021.

The company also ended at a higher price of around Rs. 33 last week’s close of trading.

Earlier in the previous year, LIOC made a net loss of 126.3 million and this was attributed to not being able to obtain a price hike in fuel to match the global escalating oil prices. The last price revision took place on 12 June 2021.

LIOC said in October that their losses were around Rs. 40/litre on sale of Diesel and Rs. 20liter on sale of Petrol at the current international prices during the time. LIOC has been left with no other option but to increase the prices of Petrol and Diesel as the quantum of losses has become unbearable, the company said in a release last October.

“Lanka IOC is only a public limited energy company and accountable to its more than 10,500 local shareholders. Such continuous losses for an indefinite period shall have a very detrimental effect on the financials of the company and its ability to invest to provide value-added services to its customers,” the release added.