Wednesday 9 May 2018

Sri Lanka IOC unit losses fall in March 2018 quarter

ECONOMYNEXT - Losses at Indian Oil Corporation's Sri Lanka unit, Lanka IOC Plc, contracted 84 percent from a year earlier to 103.4 million rupees in the March 2018 quarter, helped by other income and a fall in administration expenses, interim accounts showed.

The company reported a loss of 17 cents a share in the quarter, interim financial statements filed with the Colombo Stock Exchange showed. The stock was trading 40 cents higher at 33.40 rupees in early trading Wednesday.

Lanka IOC reported a loss of 1.40 rupees a share for the 12 months to end March 2018 on revenues increasing 12.7 percent from a year earlier to 91.3 billion rupees. The company proposed a 65 cents final dividend for the year.

IOC raised retail prices on March 23 as oil prices rose, while state run CPC held price down. The firm also sells lubricants.

The stock has moved up in recent weeks in the expectations of a price formula.

The company said revenues grew 17 percent to 23.8 billion rupees and costs of sales grew at a slower 16 percent to 23.7 billion rupees, giving gross profits of 52.4 million rupees for the March quarter against a loss of 89.5 million a year earlier.

Profits were helped by other operating income which rose 40-fold to 236.7 million rupees, up from 8 million rupees a year earlier.

Administrative expenses plunged 95 percent to 12.9 million rupees down from 269 million rupees a year earlier.

The company told shareholders that there was a contingent liability of 1.4 billion rupees as at end-March 2018 on account of a dispute with the Inland Revenue Department's assessment of Lanka IOC's Nation Building Tax liabilities for each year since 2012.

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