LIOC records Rs. 88 Bn highest quarterly revenue

Lanka Indian Oil Company (LIOC) recorded the highest quarterly revenue of Rs 88 billion aided by Fuel and Bunkering segments LIOC continued to deliver robust performance for 2QFY23 where the earnings reported a significant growth of 4,288.7%YoY to Rs 12.4 billion.

Profit growth was mainly attributable to the steep increase in revenue by 326.8%YoY to Rs 88 billion as the local fuel prices continued to remain at a higher level where no significant downward price revisions were applied during the quarter.

Bunkering segment contributes 25% to the group’s topline which holds the market leadership with a market share of 30% as LIOC bunkering has an exclusive privilege of supplying bunker oil for both local and foreign vessels at Trincomalee port.

Finance cost slumped to Rs 194 million in 1QFY23. Finance cost for the 2QFY23 significantly dropped by 89.2% QoQ to Rs 193.6 million amidst the settlement of borrowings of Rs 18.2 billion during the quarter. In the midst of a high interest rate environment, the management has decided to utilize the portion of earnings to cover the working capital requirement instead of debt as the cost of LKR borrowings has drastically risen to nearly 27 %. Prior to the new 50 sheds, LIOC already had 46 sheds on the cards which had not commenced till date (in total 96 sheds).