The Hindu Business Line : LIOC turns around; posts $21.77 m net profit for FY08

COLOMBO: LIOC, the Lankan arm of Indian Oil Corporation, Lanka Indian Oil Corporation (LIOC) has announced a net profit of $21.77 million for 2007-08, a turnaround from the losses of $6.38 million registered in the previous fiscal.

The annual turnover of LIOC for 2007-08 stood at SlRs 44.8 billion against SlRs 32.8 billion during the previous fiscal, a rise of over 36 per cent.

The company registered a net profit of SlRs 890.7 million for the last quarter of the 2007-08, against a profit of SlRs 830.6 million during the corresponding period of the previous year.

The Managing Director of Lanka Indian Oil Corporation, Mr K Ramakrishnan, attributed the profits to the Sri Lankan government's timely decision to increase fuel prices in line with rising global crude oil prices.

Besides, the company has also striven to minimise exposure to losses on the sale of petrol and diesel due to delay in price correction. Last year, the Sri Lankan government raised prices of petrol and diesel seven times, which pushed up the inflation ra te in the country to over 20 per cent.

This month too, the government raised the prices of petrol and diesel after hiking the rates in January.

LIOC, last year, received oil bonds worth SlRs 4.46 billion from the government as compensation for underpricing the fuel.

Aiming to improve its profits during 2008-09, LIOC has decided to double its lubricant production to six lakh litres monthly to save on imports from India. - PTI

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