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LIOC records profits 

15 May 2022

Concerns have been raised over the profits earned by Lanka Indian Oil Company (LIOC) at a time when the State-owned CPC is incurring heavy losses. Petroleum sector unions allege that the Government is paving the way for LIOC to earn profits by letting it increase fuel prices periodically. As per statistics, in the March 2022 quarter, LIOC had earned a net profit of Rs. 3.37 billion – 248% up from Rs. 968 million in the same quarter a year earlier. In the year ended 31 March, the company reported Rs. 9.05 per share on total profits of Rs. 4.81 billion, from earnings of Rs. 876.8 million a year earlier. Revenue for the December quarter was Rs. 29.5 billion, up 42.7% from a year earlier, while the cost of sales was Rs. 24.5 billion, up 29.2%, leading to gross profits of Rs. 5 billion, up 192%. LIOC inventories increased by Rs. 17.6 billion by March 2022. When contacted by The Sunday Morning, LIOC Managing Director Manoj Gupta said even though the company as a whole had earned profits, it was still incurring losses from petroleum sales. “When it comes to profitability, it’s not out of retail. We are a diverse group, which is into bunkering, lubricants, and petrochemicals. Why do we still need to incur losses while we are selling gas oil and gasoline? Today’s loss even after the last price revision is more than Rs. 100 per litre for diesel, Rs. 120 per litre for gas oil, and close to Rs. 60 for gasoline.” Gupta also stressed on the need to introduce a transparent price formula and added: “We are looking forward to a formula to be placed. We are a publicly listed company and we have close to 11,000 shareholders. We are accountable to everyone.”  


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