Sri Lanka Indian Oil Corp unit profits up 300-pct

Nov 12, 2012 (LBO) - Lanka IOC, a unit of Indian Oil Corporation said profits in the September 2012 quarter rose 327 percent from a year earlier, partly helped by foreign exchange gains.

 The firm reported earnings of 2.22 rupees per share. In the six months to September the firm reported earnings of 2.58 per share on total profits of 1.37 billion rupees in interim accounts filed with the Colombo Stock Exchange.

 Revenues grew 58 percent to 20.1 billion rupees, expenses grew 18.6 percent to 56.3 billion rupees and gross profits grew 93 percent to 1.57 billion rupees.

The firm also reported 112 million rupees in foreign exchange gains.

Lanka IOC was filing quarterly earnings under Sri Lanka new accounting standards.

Sri Lanka raised retail oil prices in February 2012 after manipulating prices over the previous year helping trigger a balance of payments crisis.

In Sri Lanka while petrol is excessively taxed, diesel is sold at a lower price, despite being more expensive to import than petrol.

Lanka IOC can cut losses from diesel sales by raising prices, which drives part of the demand to its main competitor, state-run Ceylon Petroleum Corporation.

 Lanka IOC also sells, lubricants and bunkers for ships.

source - www.lbo.lk