A substantial decrease in finance costs enabled Lanka IOC PLC (LIOC) to post a net profit of Rs.805.9 million for the three months ended March 31, 2013 (4Q12) as against Rs.42.6 million during the corresponding period of the previous year, interim financials released to the Colombo Stock Exchange revealed.

Accordingly finance costs fell from Rs.870.8 million during the final quarter of 2012 to Rs.28 million during the quarter under review.

A further increase in finance income, which was Rs.106.4 million during the period in consideration in comparison to Rs.25.3 million during 4Q12, also contributed to the growth of the company’s bottom line.

Revenue for the quarter fell to Rs.19.2 billion from Rs.19.4 billion a year earlier and cost of sales fell to Rs.17.7 billion from Rs.17.8 billion and gross profits fell to Rs.1.44 billion from Rs.1.6 billion. Gross profits fell to Rs.790 million from Rs.895 million.

Also LIOC’s income tax expenses increased during the quarter under review to Rs.63.2 million as against Rs.7.8 million during the corresponding period of 2012.

Earnings per share (EPS) for the quarter ended March 31, 2013 stood at Rs.1.51 as opposed to 8 cents during the quarter ended March 31, 2012.

Meanwhile for the year ended March 31, 2013 the company recorded a net profit of Rs.2.9 billion as against Rs.905.9 million during the previous year.

During the year under review too finance costs fell from Rs.1.1 billion to Rs.138.8 million while finance income too increased from 78 million to Rs.267 million.

LIOC is a unit of India’s state controlled oil major, Indian oil Company

Lanka IOC has achieved yet another milestone in Lube marketing by inking an agreement with M/s Lanka Ashok Leyland PLC (LAL) on 01.02.2012 for supply of lubricants to transport sector in Sri Lanka. LAL is one of the oldest Indian joint venture company established in 1982 between Govt of Sri Lanka and Ashok Leyland Limited, India to assemble Ashok Leyland vehicles in Sri Lanka. Presently over 20,000 nos Ashok Leyland vehicles are in operation in Sri Lanka. LAL is a market leader with 86% share in passenger vehicles segment and 54% share in heavy goods commercial vehicle segment in Sri Lanka. They have recently supplied 300 nos. buses to Sri Lanka Transport Board and is in the process of supplying additional 500 nos buses on revenue sharing basis. The maintenance of buses are taken care of by LAL and there lies the opportunity for introducing Servo Grades to the buses of Sri Lanka Transport Board who are presently using other brands.

Lanka IOC has appointed LAL as the Lube Distributor for transport sector in Sri Lanka to penetrate the business of Sri Lanka Transport Board and other major fleet operators who are depending on LAL for their spare parts/services.  The agreement signing was held at Lanka IOC office at Colombo on 01.02.2012.

Mr. K R Suresh Kumar, Managing Director/Lanka IOC and Mr. Umesh Gautam, CEO, Lanka Ashok Leyland PLC have signed the agreement in the presence of Mr. Sudhir Bhargava, Additional Secretary MOP&NG ,Govt of India  Mr. M. Nene, Chairman, Lanka IOC PLC & Director(M),IOC  and Mr. Manish, Counsellor(Economic & Commercial), High Commission of India, Colombo.

Profits at Lanka IOC the second fuel distributor in Sri Lanka surged to 1.39 billion rupees in the June 2013 quarter from 191 million rupees a year earlier.

The firm reported earnings of 2.53 rupees per share in the quarter. Revenues dropped to 18.4 billion rupees in the June 2013 quarter from 18.6 billion rupees a year earlier and cost of sales dropped faster to 16 billion rupees from 17.4 billion, almost doubling gross profits to 2.4 billion rupees from 1.26 billion.

Managing director said revenues dropped because bunker sales were weak in the quarter, lubricant volumes were up and costs were kept down. “We optimized our purchases though procurements,” he said.

Oil prices have been moderate during the period, he said.

Finance costs fell to 251 million rupees in the quarter from 442 million rupees a year earlier.

The Lanka IOC said a stronger exchange rate in the June quarter helped bring down finance costs but in the September quarter a weaker exchange rate will push up costs.

Lanka IOC PLC as one of the leaders in Sri Lanka Oil Companies had a Rs 2.83 billion net profit for the six months ended 30 September 2013, up from Rs 1.37 billion a year ago, interim financial results filed with the stock exchange showed.

Revenue for the six-month period increased to Rs 39.23 billion, up from
Rs 38.86 billion a year ago.Distribution costs fell to Rs 855.75 million, down from Rs 889.24 million a year ago.

Finance income grew to Rs 100.98 million, down from Rs 51.3 million and finance costs increased to Rs 309.49 million, up from Rs 155.84 million a year ago. Basic earnings-per-share amounted to Rs 5.32, up from Rs 2.58 a year ago