Category Archives: Press Releases
Extracted from Daily Mirror – 26th Aug 2015
The country’s largest privately held petroleum products distributor Lanka IOC foresees a pickup in the bitumen Sri Lanka market with the restart of several government projects.
“As Sri Lanka accelerates its developmental activities, including the construction and renovation of roads, demand for bitumen is set to increase. Therefore, I am hopeful of resurgence in demand for bitumen within the new financial year,” Lanka IOC Managing Director Subodh Dakwale said.
Though new road construction was halted for just 3 months, Lanka IOC had seen a steep contraction in the bitumen sector during the past financial year.
“With no road development activities by the government during the latter part of the financial year, the demand for Bitumen was severely impacted, causing overall volumes from this segment to contract by 44 percent year-on-year,” Dakwale said.
However, the oversupply of oil in the global market could spell greater profits for the bitumen sector going forward due to reduced cost of production, if retail prices are held up. Crude oil prices fell below US$40 per barrel this week for the first time since 2009.
Bitumen is a hydrocarbon binding material which has a wide variety of industrial applications including its use as a binding agent for road surfacing and waterproofing. It is obtained either naturally, or as a petroleum or coal by-product.
While Lanka IOC imports the bitumen it sells, state-owned Ceylon Petroleum Corporation has the largest bitumen market share through its residual production at the Sapugaksanda refinery.
Sri Lanka IOC providing quality engine oil in Sri Lanka, to enter Malaysia, Indonesia lubricant markets
August 27, 2015 11:15 amECONOMYNEXT
The Sri Lankan unit of Indian Oil Corporation plans to expand export markets and has said it will enter the Malaysian and Indonesian lubricant markets.
“Our growth plans have not been limited to the domestic market,” Lanka Indian Oil Corp. Managing Director Subodh Dakwale said.
LIOC has done a study on entering export markets with its premium lubricants and is currently testing the markets of Indonesia and Malaysia with the appointment of a small number of distributors for Lanka IOC lubricants.
“Plans for exporting lubricants will be unrolled during the year to test the markets of Indonesia and Malaysia,” Dakwale told shareholders in the company’s annual report.
“Although I do not anticipate significant revenue contributions from market development initiatives over the short term, I believe export markets will open up new revenue opportunities over the longer term.” (Colombo/August 25 2015)
Extracted from Daily News
Lanka IOC is planning on investing Rs. 400 million to add another 20 fuel stations to the current network, while also completing refurbishments of the existing fuel outlets, Lanka IOC Managing Director Subodh Dakwale said.
The company has also plans to export lubricants to test the markets of Indonesia and Malaysia.
The company’s market share of the lubricants sector will also be expanded through promotional campaigns by utilising the growing fuel station network as retail points. In this regard, extensive market surveys have already been conducted and revamped Lanka IOC lubricants will be launched in the new financial year(2015/2016). “Although I do not anticipate significant revenue contributions from market development initiatives over the short term, I believe export markets will open up new revenue opportunities over the longer term,”Dakwale said.
Lanka IOC bunkering operations are currently facing severe price competition from Indian ports that are able to offer lower prices due to domestic production of fuels, while Lanka IOC has to accommodate the additional costs related to fuel imports. However, he is hopeful that company’s technical expertise and extensive range of services will continue to provide a competitive advantage to ensure sustained revenue growth in the new financial year. (IH)
Extracted from: www.shipandbunker.com
Lanka IOC PLC (Lanka IOC), the Sri Lankan subsidiary of India’s largest oil refiner Indian Oil Corporation Ltd, says it is aiming to sell 10,000 mt of MGO and 380 CST by the end of 2015, Platts reports.
The company has already reportedly sold 4,000 mt of both 380 CST and MGO since its Trincomalee bunkering operations began on June 25, and is aiming to increase this to 6,000 mt during its second month of operations.
Lanka IOC is said to have a capacity for 20,000 mt of 380 CST and 6,000 mt of MGO in its Trincomalee storage tanks.
Lanka IOC is currently offering 380 CST product that it says it imports through a tender process from either Singapore, Fujairah, or India.
Both types can be set for delivery within the next one or two weeks, says Lanka IOC.
Last week, it was reported that Lanka IOC had commenced bunkering operations from its Trincomolee oil terminal, which is said to provide additional bunkering options to the vessels operating in Bay of Bengal.
Lanka IOC joins CMA Sri Lanka as Platinum Sponsor for Global Management Accounting Summit 2015
July 23, 2015 10:20 amExtracted from: Daily FT
Lanka IOC joined hands with CMA – Sri Lanka as Platinum Sponsor for the Global Management Accounting Summit 2015 to be held on 27-29 July at Cinnamon Lakeside, Colombo.
The Sponsorship Cheque was presented to Prof. Lakshman R. Watawala by Subodh Dakwale.
From left: CMA Consultant L.B. Wattegedare, Lanka IOC Senior VP (Finance) Anuj Jain, Lanka IOC Managing Director Subodh Dakwale, CMA President Prof. Lakshman R. Watawala, CMA VP Basheer Ismail, CMA Council Member H.M. Hennayake Bandara and CMA Council Member Adrian Perera
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 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, 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.
A function organized by the Lanka IOC in Trincomalee to mark the International Women’s Day was held at the Chaya Blue Hotel in Trincomalee last Saturday. Apart from the employees of the company, a large number of women in the area also participated in the event.
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