Lanka IOC bleeds with Rs. 652 m loss in 9 months after Rs. 3.7 b profit a year ago

Lanka IOC PLC has suffered a loss of Rs. 652 million for the first nine months of FY2017/18, against a profit of Rs. 3.7 billion in the corresponding period of last year.

The worsening bottom line was aggravated by a Rs. 340 million loss in the third quarter in comparison to a profit of Rs. 257.5 million a year earlier. Lanka IOC has been demanding for an upward revision in fuel prices in line with higher global prices. Fuel prices were last revised in January 2015.

Revenue in the first nine months of FY2017/18 was Rs. 67.5 billion, up from Rs. 60.7 billion. Cost of sales were Rs. 65.78 billion, as against Rs. 53.5 billion last year. Gross profit amounted to Rs. 1.7 billion, down from Rs. 7 billion in the first nine months of FY2016/17. The deteriorating bottom line is despite Lanka IOC managing reductions in distribution costs and administrative expenses and higher other operating income as well as finance income.  

Operating loss was Rs. 1.08 billion as against a profit of Rs. 4 billion whilst pre-tax loss was Rs. 579 million, in comparison to Rs. 4.4 billion profit in the first nine months of last year. In the third quarter too Lanka IOC had kept expenses low. Gross profit in the quarter amounted to Rs. 277.8 billion, as opposed to Rs. 1.3 billion profit a year earlier.