Lanka IndianOil registers $21.77 mn net profit
New Delhi   31-May-2008
Lanka IndianOil, the Lankan arm of IndianOil, 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 year. The annual turnover of Lanka IndianOil for 2007-08 stood at 44.8 billion Sri Lankan rupees against 32.8 billion rupees during the previous fiscal, a rise of over 36 per cent. The company registered a net profit of 890.7 million rupees for the last quarter of the 2007-08, against a profit of 830.6 million rupees during the corresponding period of the previous year. The managing director of Lanka Indian Oil Corporation, K. Ramakrishnan, attributed the profits to the Sri Lankan governments timely decision to increase fuel prices in line with rising global crude oil prices. Besides, the company has also striven to minimize exposure to losses on the sale of petrol and diesel due to delay in price correction/In calendar year 2007, the government of Sri Lanka had revised the price seven times. That is the main reason for this better performance," said Ramakrishnan. Aiming to improve its profits during 2008-09, Lanka IndianOil has decided to double its lubricant production to six lakh litres monthly to save on imports from India. "We produce 3 lakh litres of lubricants at our Trincomalee refinery in Eastern Sri Lanka and will be utilizing the capacity to double output," Ramakrishnan said. He said there would be no additional investment required for doubling ¦ the lubricant output in Sri Lanka as the Trinco refinery can produce up to 6 lakh litres monthly. Lanka IndianOil already enjoys a 15 per cent market share in an environment where there are more than 5 competitors.