Thursday, 13 May 2021 19:56

Lanka IOC 4Q profits soar on lower oil prices Featured

Relatively low global oil prices and the resurgence seen in economic activities in the first three months of 2021 helped Lanka IOC PLC to deliver a profit in the period ended in March 2021 (4Q21)

It has reported revenues of Rs.20.7 billion for the quarter compared to Rs.22.2 billion in the same period a year earlier when the economy made a similarly robust rebound before it came to a halt by mid-March due to virus induced economic shutdowns.

For instance the prices at the Brent futures exchange, the global benchmark for oil has risen from US$ 29.63 to US$ 68.67 a barrel during a year through May 11.

Although year-over-year revenues were slightly down, on a quarter-on-quarter basis, Lanka IOC made a huge advance from Rs.16.6 billion revenues in the previous quarter ended in December 2020, as people went back to work, took excursions, industrial activities gained steam and the lives returned to near normalcy with the ease of virus related restrictions.

The company reported earnings of Rs.1.83 a share or Rs.973.9 million in the January-March quarter compared to a loss of 66 cents a share or Rs.346.2 million in the same period in 2020.

For the full year ended in March 31, 2021, the company reported earnings of Rs.1.66 a share or Rs.882.6 million compared to earnings of 79 cents a share or Rs.421.8 million in the previous fiscal year.

Lanka IOC is also enjoying the fruits of the lower interest rates as the finance cost of the company slumped to Rs.476.3 million in the year ended in March 2021 from Rs.977.6 million last year, notwithstanding fresh borrowings accumulated during the year.

The company is also into bunkering, bitumen and petrochemicals and is the second largest lubricant marketer in the country with a market share of 15 percent, after Chevron Lubricants.

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