Lanka IOC posts 327% rise in third quarter profit

Lanka IOC, a unit of Indian Oil Corporation, reported that its third quarter profit rose by 327% year-on-year, partly due to foreign exchange gains which were reported at Rs112 million (US$882,237). In its report, the firm said that earnings per share were at Rs2.22 (US$0.01) for the quarter, and Rs2.58 (US$0.02) per share in the six-month period, with Rs1.37 billion (US$10.8 million) of total profits in interim accounts.
The government raised retail oil prices in February 2012, after a year of manipulation that triggered a balance of payments crisis. In Sri Lanka, petrol is excessively taxed and diesel fuel is sold at a lower price, despite being more expensive to import than petrol.
Lanka IOC, which also sells lubricants and bunker fuel for ships, says it can cut losses from diesel fuel sales by raising prices, but that would drive business to its state-run competitor, Ceylon Petroleum Corporation. (November 12, 2012)