Lanka IOC posts profits again

Lanka IOC, a subsidiary of Indian Oil, posted profits of LKR 876 million (US$8 million) on a turnover of LKR 51.74 billion (US$472.5 million) for the fiscal year 2010-2011.  The company has been reporting a loss since 2007-2008.  The recovery is based on smart pricing for petrol and diesel fuel and a move toward diversification into niche markets.  These niche markets of lubricants, bitumen and bunkering were responsible for nearly 40% of the posted profits.  K.R. Suresh Kumar, managing director for Lanka IOC, “After the huge knocks we took from 2007-08, we made a conscious decision to concentrate on fields related to the core petroleum business, so that the dependence on profits on sale of petrol and diesel is reduced.”  The company now holds the number four place in market share for retail petrol and the diesel vending sector in Sri Lanka. (June 8, 2011)