LIOC posts profits on bunker fuel sales

Strong sales of bunker fuel during the last quarter of its fiscal year helped Lanka Indian Oil Corp. (LIOC) to offset losses during the previous three quarters. Chairman G.C. Daga said that during the financial year ended March 31, 2011, the company “reoriented” its business strategies by enhancing focus on profitable business lines like lubricants, bitumen and bunkering. LIOC prices diesel five rupees higher than its competitor, state-run Ceylon Petroleum Corp., a former monopoly, whose pricing is controlled by the government which subsidizes fuel sales. Daga said the company has re-engineered its bunkering activities by removing bottlenecks in the supply chain and by developing a new system for improved delivery. “As a result, the loss suffered in bunker operations during the first nine months was all but wiped out by our strong performance in the last quarter.” (July 22, 2011)