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Lanka IOC Q3 net up 72.5 pct

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COLOMBO, (Reuters) – Group results for Lanka IOC PLC, the Sri Lankan arm of Indian Oil Corp, for the three months ended Dec. 31, released recently. (in millions of rupees unless otherwise stated):

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NOTE – Results are provisional and unaudited.

  • Foreign investors and funds hold 77 percent of the tota issued shares in the company, which has a market cap of 20.24 billion Sri Lankan rupees ($154.80 million) and accounts for 0.79 percent of the total market capitalisation of the stock exchange, latest bourse data showed.
  • The parent, Indian Oil Corp, holds 75.12 percent of the shares in its Sri Lankan arm.
  • Shares in Lanka IOC have gained 35.1 percent in the December quarter and 19.3 percent so far this year.

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair for Reuters)

Complete results can be downloaded from our Investor Section.

Sri Lanka’s Indian oil unit records profits

A substantial decrease in finance costs enabled Lanka IOC PLC (LIOC) to post a net profit of Rs.805.9 million for the three months ended March 31, 2013 (4Q12) as against Rs.42.6 million during the corresponding period of the previous year, interim financials released to the Colombo Stock Exchange revealed.

Accordingly finance costs fell from Rs.870.8 million during the final quarter of 2012 to Rs.28 million during the quarter under review.

A further increase in finance income, which was Rs.106.4 million during the period in consideration in comparison to Rs.25.3 million during 4Q12, also contributed to the growth of the company’s bottom line.

Revenue for the quarter fell to Rs.19.2 billion from Rs.19.4 billion a year earlier and cost of sales fell to Rs.17.7 billion from Rs.17.8 billion and gross profits fell to Rs.1.44 billion from Rs.1.6 billion. Gross profits fell to Rs.790 million from Rs.895 million.

Also LIOC’s income tax expenses increased during the quarter under review to Rs.63.2 million as against Rs.7.8 million during the corresponding period of 2012.

Earnings per share (EPS) for the quarter ended March 31, 2013 stood at Rs.1.51 as opposed to 8 cents during the quarter ended March 31, 2012.

Meanwhile for the year ended March 31, 2013 the company recorded a net profit of Rs.2.9 billion as against Rs.905.9 million during the previous year.

During the year under review too finance costs fell from Rs.1.1 billion to Rs.138.8 million while finance income too increased from 78 million to Rs.267 million.

LIOC is a unit of India’s state controlled oil major, Indian oil Company

Signing of Agreement with Lanka Ashok Leyland for Servo Lube Distribution in Sri Lanka

Lanka IOC has achieved yet another milestone in Lube marketing by inking an agreement with M/s Lanka Ashok Leyland PLC (LAL) on 01.02.2012 for supply of lubricants to transport sector in Sri Lanka. LAL is one of the oldest Indian joint venture company established in 1982 between Govt of Sri Lanka and Ashok Leyland Limited, India to assemble Ashok Leyland vehicles in Sri Lanka. Presently over 20,000 nos Ashok Leyland vehicles are in operation in Sri Lanka. LAL is a market leader with 86% share in passenger vehicles segment and 54% share in heavy goods commercial vehicle segment in Sri Lanka. They have recently supplied 300 nos. buses to Sri Lanka Transport Board and is in the process of supplying additional 500 nos buses on revenue sharing basis. The maintenance of buses are taken care of by LAL and there lies the opportunity for introducing Servo Grades to the buses of Sri Lanka Transport Board who are presently using other brands.

Lanka IOC has appointed LAL as the Lube Distributor for transport sector in Sri Lanka to penetrate the business of Sri Lanka Transport Board and other major fleet operators who are depending on LAL for their spare parts/services.  The agreement signing was held at Lanka IOC office at Colombo on 01.02.2012.

Mr. K R Suresh Kumar, Managing Director/Lanka IOC and Mr. Umesh Gautam, CEO, Lanka Ashok Leyland PLC have signed the agreement in the presence of Mr. Sudhir Bhargava, Additional Secretary MOP&NG ,Govt of India  Mr. M. Nene, Chairman, Lanka IOC PLC & Director(M),IOC  and Mr. Manish, Counsellor(Economic & Commercial), High Commission of India, Colombo.

Lanka IOC profits surge

Lanka IOC PLC had a Rs 2.83 billion net profit for the six months ended 30 September 2013, up from Rs 1.37 billion a year ago, interim financial results filed with the stock exchange showed.

Revenue for the six-month period increased to Rs 39.23 billion, up from
Rs 38.86 billion a year ago.Distribution costs fell to Rs 855.75 million, down from Rs 889.24 million a year ago.

Finance income grew to Rs 100.98 million, down from Rs 51.3 million and finance costs increased to Rs 309.49 million, up from Rs 155.84 million a year ago. Basic earnings-per-share amounted to Rs 5.32, up from Rs 2.58 a year ago

Lanka IOC unveils a range of lubricants with synthetic chemistry

Lanka IOC PLC, unveiled a range of new age lubricants in the presence of a large gathering of customers from the automobile industry, OEM representatives, trade partners and distributors at a colourful ceremony at the ‘Atrium’ of Cinnamon Grand Hotel. Following the launch of Servo Futura range of lubricants consisting of SERVO Futura Synth, SERVO Futura P, SERVO Futura P Plus, and SERVO Futura D, Lanka IOC PLC Managing Director, Subodh Dakwale, said the launch today marks a distinct technological milestone in the 40 year history of brand ‘SERVO’.
Speaking further he said: “SERVO Futura meets the latest international specifications of American Petroleum Institute, Volvo and Mercedes Benz, besides the latest European specifications. With the launch of SERVO Futura Synth Lanka IOC now joins the select brands of premium global lubricants that offer fully synthetic engine oils.”
The top-end offering SERVO Futura Synth is a 100% synthetic premium lubricant that is formulated from performance enhancing Polaphoalefins group-IV base oils and additives that are classified by the American Petroleum Institute (API). SERVO Futura Synth meets the most advanced performance level standards of API SN, with 5W-50 viscometrics ensuring improved mileage and excellent engine performance. The product offers outstanding protection to engine, besides, enhanced engine life through its effective anti-wear capabilities.

SERVO Futura P+, a hybrid synthetic oil meeting the highest specifications of API SN, is another superior engine oil as also are SERVO Futura P and SERVO Futura D – for petrol and diesel engines respectively.
SERVO Futura range of lubricants are a unique combination of products and services that enable users to combine high quality maintenance and reduced operating costs for materials. It is the smart solution for people who want to simplify the maintenance of their car. It caters to an entire range of new generation vehicles and the advantage of Futura is that it clings to the piston and works even when the engine is not running. It shields the engine’s crucial components even when it’s off providing round-the-clock protection for your car’s engine. The superior polar chemistry ensures cleaner engine, provides enhanced engine life and lower maintenance cost.

SERVO with more than a 40% share in the Indian market of approximately 1.4 million metric tonnes served by more than 40 lubricant companies which include all of the world’s leading brands, is fast becoming Sri Lanka’s preferred choice of lubricants ahead of its competitors due to the unmatched quality and range of its products. Today, SERVO is the second largest selling brand in Sri Lanka. Continued availability resulting from a wide distribution network further fortifies its stake in the market as a major player. SERVO’s attention to detail also ensures that venturing into new explorations, collaborations and relationships are consistently carried out in accordance with the company’s vision of providing unrivaled product and service excellence. Recently LIOC has commenced manufacturing group II based diesel engine oils meeting API CH4 specification in its plant in Trincomalee. LIOC has launched the concept of SERVO Shops which are exclusive shops for marketing SERVO range of lubricants.

Speaking on this occasion Dakwale, further said, “Being a market leader, we have a keen eye on the ever changing dynamics of the market. Rising oil prices and the ever-growing demand for environment protection has resulted in the industry seeking energy-efficient and less polluting engines. In turn this has pressurized oil manufacturers into delivering absolutely cutting-edge products.”

He further stated that for more than 40 years SERVO has worked assiduously to earn the trust of man and the respect of machine. Working deep inside the crankcase of high-speed engines where massive heat is generated and friction can cause engines to seize, SERVO has discharged an important responsibility with self-belief and commitment. Today, it symbolizes innovation, technology, reliance and value.

Lanka IOC PLC is the overseas venture of IOC India, a Fortune 500 company. It is the only private oil company other than the state-owned Ceylon Petroleum Corporation (CPC) that operates over 150 retail petrol/diesel stations in Sri Lanka and has a very efficient lube marketing network. Its major facilities include an oil terminal at Trincomalee, Sri Lanka’s largest petroleum storage facility and an 18,000 tonnes per annum capacity lubricant blending plant and state-of-the-art fuels and lubricants testing laboratory at Trincomalee. With a powerful compilation of energy brands in addition to the SERVO brand of lubricants including, ‘XtraPremium Euro III Petrol, XtraMile Diesel’ strengthening its portfolio, IOC India has also paved the way for Lanka IOC to achieve a turnover of Rs 60.4 billion.

Donation of Wheel Chairs in Commemoration of 10th Anniversary

On completion of a decade of operation in Sri Lanka, Lanka IOC under its CSR Project theme “WE CARE” decided to undertake a few activities of worthy course to serve the community in which it operates.

Number of activities under the theme “We Care including blood donation camp, developing a Bio-Diversity park at Battaramulla in collaboration with the Ministry of Enviornment, English Education for rural school children,
supply of essential medicine for Cancer patients and the donation of Wheel Chairs for needy people were lined up.

People with a mobility disability or physical disability are the same as everyone else. Disability may occur anytime to anyone for various reasons – such as accidents, illness etc., results of which may make the persons’ mobility difficult.
As a responsible corporate citizen, it is our duty to support such needy people in whatever possible manner – making
life convenient, said Mr Subodh Dakwale, Managing Director of Lanka IOC PLC at the event organized to hand over the Wheel Chairs to those with mobility disability, on 11.12.2012 at its Head Office with the participation of all staff of Head Office.

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Lanka IOC profits surge to 1.39 billion

Profits at Lanka IOC the second fuel distributor in Sri Lanka surged to 1.39 billion rupees in the June 2013 quarter from 191 million rupees a year earlier.

The firm reported earnings of 2.53 rupees per share in the quarter. Revenues dropped to 18.4 billion rupees in the June 2013 quarter from 18.6 billion rupees a year earlier and cost of sales dropped faster to 16 billion rupees from 17.4 billion, almost doubling gross profits to 2.4 billion rupees from 1.26 billion.

Managing director said revenues dropped because bunker sales were weak in the quarter, lubricant volumes were up and costs were kept down. “We optimized our purchases though procurements,” he said.

Oil prices have been moderate during the period, he said.

Finance costs fell to 251 million rupees in the quarter from 442 million rupees a year earlier.

The Lanka IOC said a stronger exchange rate in the June quarter helped bring down finance costs but in the September quarter a weaker exchange rate will push up costs.

Launch of Corporate Fuel Card and XtraPremium Euro 3

His Excellency Mr Ashok K Kantha, Hon’ble High Commissioner of India in SriLanka launched Corporate Fuel card and XtraPremium Euro 3 at M/s Felix Perera, flagship Retail Outlet of Lanka IOC.

The launch took place on 01.02.2012 in presence of Mr Sudhir Bhargava, Additional Secretary MOP&NG, Govt of India, Mr M Nene, Chairman Lanka IOC, Dr Hans Wijayasuriya, Group CEO Dialog and Mr K R SureshKumar, Managing Director, Lanka IOC. CEOs of many companies in SriLanka were also present at this function to witness the launch of Corporate Fuel Card which is the first of its kind in SriLanka and provides solution to the fuel requirement of Corporates without going through intermediaries.

Corporate Fuel card has been launched by Lanka IOC with a tie up with Dialog. Under this scheme, cards will be issued to the corporate bodies which can be used for taking fuel from Lanka IOC Petrol sheds. The respective Corporate may assign different limits to the individual cards through web based solution provided by Dialog.  This will help the Corporate bodies to do away with processing of reimbursements to individual employees, tracking fuel consumption and convenience of settling the payment directly with Lanka IOC.

M/s Dialog in strategic partnership with Lanka IOC will provide necessary hardware at the Retail outlets and will provide web based interface for all the Corporates and dealers of Lanka IOC.

Lanka IOC donates ambulance to Mahadivulwewa Hospital in Trincomalee district

Lanka IOC PLC a leader among Sri Lanka oil companies completed 10 years of business operation in 2012, and to commemorate its anniversary Lanka IOC lined up various CSR activities benefiting the community where the company has its branches. One such community-based service took place on 24 June 2013 at Hotel Taj Samudra premises.

Lanka IOC donated an ambulance to the Divisional Hospital in Mahadivulwewaa, Trincomalee hospital provides healthcare services for over 10,000 people in that area and to transfer a patient to the General Hospital in Trincomalee, it takes more than an hour; the estimated distance is around 40km. Looking into this longstanding requirement of this remote area, Lanka IOC came forward to donate the ambulance.

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LIOC Managing Director, S. Dakwale in his address stated that LIOC is committed to helping the needy and poor people and providing them better services to uplift their life in future.

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Director (Marketing) addresses the 10th AGM of Lanka IOC

Addressing the 10th Annual General Meeting (AGM) of Lanka IOC held at Colombo. Mr.M.Nene Chairman Lanka IOC and Director (Marketing), Indian Oil said, “Lanka IOC will continue to play a key role in energizing and enriching the nation, supporting the endeavor of the Government of Sri Lanka, for developing the nation into a strategically important economic power in the region, under the forward-looking leadership of H.E. President of Sri Lanka.” He also added that Lanka IOC has made remarkable progress in the very first decade of its operations in Si Lanka. World-class fuels are now being offered to our valued customers in Sri Lanka for use in new generation vehicles that are increasingly popular in Sri Lanka.
With reference to the companies financial status, Mr.Nene said,”The turnover of Lanka IOC for the financial year 2011-2012 touched Sri Lanka Rs.60.4 billion while profits stood at Rs.930 million. He signed off thanking the valued shareholders for their support and promising that Lanka IOC would continue to work towards achieving energy security in Sri Lanka while focusing on offering world-class technology, products and services as part of the Company’s customer-oriented growth agenda.