Author Archives: lankaioctest

Sri Lanka embarks on a business plan to develop China Bay oil storage facility

Sri Lanka will soon formulate a business plan to expedite the development of China Bay oil storage facility as a major step towards making Trincomalee a regional petroleum hub with Indian assistance, a top official revealed.

Secretary to the Ministry of Power and Energy, Dr. B.M.S Batagoda told Business Times that a ten member task force is now working out the business plan aimed at harnessing full potential of the tank farm .

He noted that Indian Prime Minister Narendra Modi during his visit to the island in March this year has pledged to help Sri Lanka to turn Trincomalee into a regional petroleum hub and the Sri Lankan government has already made preliminary arrangements towards this end. A meeting of members of the task force was held at the Ministry of Power and Energy this week to discuss matters pertaining to the business plan, he disclosed.

The Lanka Indian Oil Corporation (LIOC) and the Ceylon Petroleum Corporation (CPC) have agreed to jointly develop the Upper Tank Farm at China Bay in Trincomalee on mutually acceptable terms, he said.

These oil tanks were built by the British in 1944 but had been lying idle since the end of World War two and the then government of Prime Minister Ranil Wickremesinghe has agreed to give them to India in the early 2000s. However it was not materialised.

LIOC Managing Director Subodh Dakwale told Business Times that his company already utilizes 14 tanks in the Lower Tank Farm and it will soon take over the upper tank farm with 84 giant oil tanks

Trincomalee’s China Bay facility, leased to Lanka IOC in 2002, has a potential storage capacity of about a million tonnes, each tank having a capacity of 12,100 tonnes. Mr. Dakwale said that a feasibility study on the project should be conducted to find out as to how refurbishment will be done, how much money to be spent and what opportunities are there for us to explore, he said.

Of the original 101 tanks built by the British in the 1930s, only 99 still exist and two were destroyed during the Second World War.

He said the 84 remaining tanks in the upper farm will have to be extensively rehabilitated.

The Trincomalee oil tank farm was included in the Indo-Lanka peace accord signed in July 1987 barring other countries from taking over it.
Under the pact, the work of restoring and operating the oil tank farm should be carried out as a joint venture between India and Sri Lanka.

Lanka IOC first fuel lab certified for ISO 9001:2008

Lanka IOC was established in Sri Lanka in the year 2002. Today Lanka IOC is one of the leading companies in Sri Lanka and is ranked among the top three companies with an annual turnover of more than Rs. 80 billion.

LIOC is not only engaged in petroleum retaining thru our 179 petrol sheds, LIOC is also into marketing of lubricant, bitumen and bunker fuels where we they enjoy sizable market share.

Oil terminal at Trincomalee is the storage hub for petroleum products in Eastern part of the country. Besides Oil storage LIOC is having a full fledged blending plant in Trincomalee for lubricants with an annual capacity of 18000 MT. Lanka IOC has always believed in high quality standards and has set up a state of the art quality control laboratory in Trincomalee.

Although LIOC had a laboratory in place with state of the art equipments and high quality standards, a need was felt for getting external certification for the same. On 8th April’15 , LIOC became the first company in Sri Lanka to get its fuel lab certified for ISO 901:2008 from Sri Lanka Standard Institute.

This is a significant achievement in our journey towards providing quality products and enhancing confidence for our customers.

Our state of the art lube testing facility has also been certified for ISO 9001:2008 along with the fuel facility. Lanka IOC wishes to make Trincomalee a quality hub for petroleum sector.

Lanka IOC donates ambulance to Lihiniyagama Divisional Hospital

Lanka IOC, under its CSR arm ‘WE CARE” recently donated an ambulance to the Lihiniyagama Hospital, in the Dehiathakandiya Division of the Ampara District.
It was formally handed over by President Maithripala Sirisena to the Regional Director of Health Services, Ampara, Dr. Senaka Talagala in the presence of the Prime Minister Hon. Ranil Wickremasinghe and the High Commissioner of India to Sri Lanka His Excellency Y. K. Sinha at the Presidential Secretariat in Colombo.
According to Dr. Talagala, the Dehiathakandiya area has been identified by the Ministry of Health as an area affected by Chronic Kidney Disease (CKD). At present, around 350 new patients have been registered in this area. The Base Hospital at Dehiathakandiya currently provides treatment to patients suffering from CKD. However, considering the large number of patients reported in the adjoining Lihiniyagama area, a Primary Medical Care Unit has been established at the Lihiniyagama Hospital to provide relief to these new patients.
President Maithripala Sirisena appreciated and welcomed the donation of this ambulance especially since a large number of CKD patients were reported from the Dehiathakandiya Division in recent times. Regional Director of Health Services, Ampara, Dr. Senaka Talagala together with Dr. Tilak Rajapakse received the ambulance on behalf of the hospital.
Speaking at the handing over ceremony Managing Director, Lanka IOC Subodh Dakwale said, “Our CSR initiatives stem from this simple yet strong belief and regular initiatives are being taken by the company in this direction”.
The High Commissioner of India to Sri Lanka His Excellency Y. K. Sinha said that the Government of India and many Indian companies in Sri Lanka have been providing many services to the community especially in the health sector. “The donation of this ambulance by Lanka IOC PLC is one such activity and I believe that this will be of immense help to the affected community in that area”, he said.

He added that with the donation of modern facilities to the Glencairn Hospital in Dickoya, the hospital would commence OPD functions in the near future. The High Commissioner affirmed that the Government of India had many more health projects lined up for the people of Sri Lanka. Also present at the handing over ceremony were Independent Directors and Senior Officials of Lanka IOC and Government officials.

LRA rates Lanka IOC at AAA

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Lanka Rating Agency (LRA) has assigned Lanka IOC’s (LIOC) a long- and short-term corporate credit ratings AAA and PP1 respectively. On a stand–alone credit profile, LIOC rated at AA+ and P1 and notched up on parent support. The long-term rating carries a stable outlook.

LIOC is mainly involved in distribution off auto-fuel and also has significant presence in lubricants, bitumen and oil bunkering markets.

The ratings were upheld by the company’s notable presence in auto-fuel distribution, bitumen and lubricants markets. Sri LLankan auto fuel distribution segment is a duopoly market and LIOC is the second auto fuel distributor in Sri Lanka with a market share of 18% after the state owned Ceylon Petroleum Corporation. LIOC has significant presennce in the bitumen segment.

However, the bitumen segment became highly competitive following the licenses granted to small and medium sized players. The company’s lubricant brand SERVO has a market presence of 15.8% in lube segment and is the second largest domestic player.

– See more at: http://www.dailynews.lk/?q=business/lra-rates-lanka-ioc-aaa#sthash.WgyGCFO9.dpuf

Lanka IOC holds annual blood donation camp

Lanka IOC PLC commemorated the 12th anniversary of it’s operations in Sri Lanka with their annual blood donation camp in association with the National Blood Bank on 29th August 2014. As in the previous years, this year too, 267 donors consisting of Lanka IOC employees, business associates and well-wishers came together at the LIOC Head office at the World Trade Centre in Colombo and also at the Trincomalee oil terminal to donate blood . The annual blood donation camp is part of the various CSR initiatives undertaken by Lanka IOC under the theme ‘We Care’.

Lanka IOC PLC, as a responsible corporate citizen, believes that Corporate Responsibility is not merely about philanthropic activities, making generous contributions to various charitable causes but about being accountable for your actions, to all your stake holders and operating in a way that ensures long term sustainability, which in turn ensures sustainable development of the Nation. Towards this, LIOC has initiated several projects such as the English for young learners project in Colombo district under the patronage of his excellency the President of Sri Lanka Mahinda Rajapaksa, donation of libraries to two rural schools in Anuradhapura district by his excellency the President of Sri Lanka , a massive tree planting drive across the country under the ‘Go Green’ concept engaging the students, donation of wheel chairs to the elders home, donation of fully equipped ambulance to Provincial Director of Health Services , Trincomalee to name just a few.

Commenting on reaching yet another milestone, Subodh Dakwale, Managing Director of Lanka IOC PLC said “It is both with a sense of pride and satisfaction that we at Lanka IOC PLC look back at twelve successful years in Sri Lanka. During this period we have grown our operations exponentially and have made significant progress with the active co-operation of the Government and the people of Sri Lanka. It gives us a deep sense of humility and fulfillment to celebrate this important anniversary by giving back to society and thereby enriching the communities we work in.”

WANTED: BITUMEN CREDIT FACILITATOR

An exciting business opportunity to partner a progressive company.

LANKA IOC PLC invites applications to appoint Bitumen Credit Facilitator for Sales of Bitumen in Sri Lanka. Lanka IOC PLC is an overseas venture of Indian Oil Corporation Ltd which is a Fortune “Global 500” company. Currently operates 169 petrol sheds and markets Bitumen throughout the island in the road construction industry. It is one of the leading listed companies in Sri Lanka with a turnover USD 650 million during the year 2013-14.

LIOC is one of the largest Bitumen selling Companies in Sri Lanka. LIOC is looking for credit facilitator with sound financial background capable of investing 100-200 million and who can canvass for bitumen business. In this respect the selected party should be able to offer credit to customers identified by LIOC. Necessary credit facilitation fee will be paid by LIOC for this purpose.

A physical Application form can be collected from Lanka IOC Head Office at Colombo on all working days between 9:00 Hrs to 16:00 Hrs or downloaded from our company web site free of charge and completed application should be submitted on or before 15:00 hours 06.01.2015.

You may also download the Application online.
Bitumen Credit Facilitator – Application Form

For further information please contact:

SR.VICE PRESIDENT – LUBES (M & P)
LANKA IOC PLC
LEVEL 20, WEST TOWER
WORLD TRADE CENTRE
COLOMBO – 01

Lanka IOC onboard to power 35th National Conference of Chartered Accountants

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Lanka IOC PLC recently came onboard to power the 35th National Conference of Chartered Accountants organized by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) with a gold sponsorship.

This is the first time Lanka IOC has extended its support to the national conference, which is one of the country’s largest corporate events, with an annual participation of over 1200 chartered accountants and business leaders. This year’s conference will revolve around the theme ‘Rethink to Revive’.

Managing Director of Lanka IOC Mr. Subodh Dakwale noted that rethinking may be linked to revive positives in efficiency, productivity, quality, competitiveness in our business process resulting in maximizing creation of wealth, value and satisfaction for all stakeholders.

“As an organization, Lanka IOC always finds innovative ways to achieve international standards of excellence in all aspects of business spectrum with a focus on our vision to become a major integrated energy company with strong environment conscience, playing a national role in energy security of the country. In the globalised environment, we need to keep evolving ourselves to remain competitive and bring customer delight through value of products and services,” he said.

Mr. Dakwale emphasized that the theme of the 35th National Conference of Chartered Accountants organized by CA Sri Lanka is very pertinent in the present world. This conference will have participation of hundreds of business leaders and professionals whose deliberation on the theme subject will certainly be very productive and helpful.

Welcoming Lanka IOC onboard, President of CA Sri Lanka, Mr. Arjuna Herath, said that it was a pleasure to have a company in the stature of Lanka IOC onboard to support the 35th National Conference of Chartered Accountants for the first time in the conference’s history.

“We are looking forward to yet another inspiring conference this year from 23rd to 25th of October 2014, which will give our chartered accountants as well as business leaders, the required leverage to help them spearhead revival by rethinking conventional business models at this year’s conference,” he added.

LIOC urges transparent pricing

The Chairman of Lanka IOC Plc (LIOC), Makrand Nene says it is of great importance that the Sri Lanka Government evolves a transparent pricing system for fuels which would not only benefit the public but would also pave way for systematic infrastructure development in the energy sector. According to the LIOC management, there remains minimal correlation of local prices to International world market prices, which exposes the industry to an acute risk of incurring significant financial losses due to sudden price fluctuations. Hence, they say there is a need for greater transparency in the formulation of a method to correlate to global prices.

Addressing shareholders at the release of the company’s Annual Report for the year March 31, 2014, the LIOC Chairman Nene said that 2013/2014 had been the most successful financial year to date, as the firm continued to grow in its second decade of operations as the second and only other player in the Sri Lankan petroleum sector next to Ceylon Petroleum Corporation (CEYPETCO).

“With the Ceylon Petroleum Corporation having finally increased their diesel selling price in line with Lanka IOC in February 2013, our retail sales of diesel grew by 41% in quantity and 46% in value this financial year,” Nene announced adding that the company has achieved Rs.81.79 billion in sales, up 9% from Rs.75.11 billion recorded in the previous year.

Lanka IOC Plc has thus recorded a profit after tax of Rs.4.8 billion for the financial year, up from Rs.2.9 billion reported in the corresponding period of the previous year.
Domestic revenue for the year has increased by Rs.11.95 billion, which is a 20.9% growth from the previous year with the largest contribution from diesel sales which increased by 53%. Petrol revenue only grew by 8% but it contributed 40% of the total revenue, financials showed.

Meanwhile, Managing Director Subodh Dakwale said LIOC continued to expand its retail sector in 2013/14, opening ten new outlets in locations where fuel filling stations were most needed, increasing its number of filling stations to 147 and refurbishing a number of existing stations.
“In 2014/15, however we plan to kick start our expansion drive by opening over forty new outlets and refurbishing a further fifty. We plan to spread our footprint across the country in a major way, by increasing our presence in the unrepresented areas of the island nation,” he announced.

LIOC said in the financial year 2013/2014, fuel products had continued to be their highest profit center, garnering 75% of the total profit and accounting for 73% of the total turnover. Sales of petrol grew by 3% in 2013/14 to over 200,000 kiloliters while with price parity finally being reached, diesel sales grew by an incredible 41% to over 222,000 kiloliters.

On the corporate end, LIOC said acquisition of the business during the period under review to supply lubricant products to the Sri Lanka Transport Board can be counted upon as a major achievement.

In the year 2013, although value of total oil imported into Sri Lanka grew up to Rs.182 billion from Rs.157 billion in 2012, the value of refined products imported reduced to Rs.353 billion from Rs.467 billion. Nonetheless, the oil prices remained unchanged within the year and sales of petrol grew by 4% and diesel grew by 2%.

Lanka IOC named among Top 10 Corporate performers in Sri Lanka.

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Business Today recognized the top corporate performers of Sri Lanka for the financial year 2013-2014 of which Lanka IOC was named among the Top 10 corporate performers for their resilience in trying circumstances and their contribution towards the economy of Sri Lanka.

The Business Today TOP TWENTY FIVE companies were selected on the basis of their financial performance during the financial year ending December 31, 2013 and March 31, 2014. It is strictly based on the published information of companies listed on the Colombo Stock Exchange. Financial criteria considered include share turnover, revenue, profit after tax, return on equity, earnings per share, market capitalization, value of shares transacted and value addition. Lanka IOC published their turn over at Rs.81.79 billion, their gross profit at a staggering Rs.8.31 billion, their profit after tax at Rs. 4,813 million and their market capitalization at Rs.20,500 million.

The Chief Guest at the occasion was Gotabaya Rajapaksa, Secretary to the Ministry of Defense and Urban Development while Chief Justice Mohan Pieris was the special guest. Mrs. Ioma Rajapaksa and Priyanthi Pieris were also present at the occasion. The event was further graced by many distinguished guests including politicians, corporate leaders, foreign dignitaries, diplomats and members of the armed forces of Sri Lanka. Mr. Rajapaksa addressed the gathering during the award ceremony. Staged performances and entertainment during the evening also shed light on the new strides and ventures of BT Options.

Since 1998, Business Today has recognized and awarded top corporate performers annually for 17 years, acknowledging their contribution to the economic development of Sri Lanka.