Petroleum Market Sri Lanka
Lanka IOC donates towards Trail Walk crowd funding initiativeNovember 2, 2016 11:00 am
Lanka IOC PLC has embarked on the organization’s next Corporate Social Responsibility (CSR) stance by giving a generous donation towards the Trail Walk initiative which took place in October this year.
The cheque for the generous amount was handed over to Mahela Jayawardena and Kumar Sangakkara by LIOC Managing Director, Shyam Bohra.
Lanka IOC Managing Director, Shyam Bohra said, “We believe in providing support to crowd funding initiatives such as the Trail Walk, which help to bring together communities and the general public, who participate in a truly worthy initiative”.
The Trail Walk, which was a brainchild of Founders Nathan Sivagananathan and Sarinda Unamboowe is Sri Lanka’s largest ever crowd-funded charitable initiative. The aim of the walk by volunteers was to raise US$ 5 million or approximately Rs. 735 million towards building a new cancer unit at the Karapitiya Teaching Hospital in Galle. Trail initially commenced in the year 2011 in the form of a walk which started from the southernmost part of the country and finished at the south in the course of 27 days covering 670 km in total.
Lanka IOC PLC is the subsidiary of IOCL, a Fortune 500 company. It is the only private oil company and a major player among Sri Lanka oil companies, other than the state-owned Ceylon Petroleum Corporation (CPC) that operates over 199 retail petrol/diesel stations in Sri Lanka and has a very efficient lube marketing network.
Taken from Daily Mirror
As a leader amoung Sri Lanka oil companies Lanka IOC introduces new look Servo Lubricants to local marketSeptember 27, 2016 10:08 am
The specialty of the product as mentioned was its improved strength and aesthetic look and the feel for the buyer. Other features as noted were its increased speed, smoothness, higher life span and energy with a higher load. Lanka IOC PLC Managing Director Shyam Bohra said that they are pleased to introduce the global container concept to Sri Lanka.
“The new design has the ease of handling it, and the aesthetic look is better than before. This particular design has been developed following research,” he said.He added that this container is much stronger in terms of design and the container can be used for different purposes and will certainly benefit the end users more. Though there are 13 players in the country’s lubricant market at present, Chevron being the leader, he said that with improved accessibility and brands, their market share is increasing year-on-year.
Being the number two player in Sri Lanka and enjoying a market share of 17-18 percent at the moment, he said that they are aspiring to touch up to 25 percent in 4-5 years. He added that as the R&D is done in India, the new technology is being immediately imparted to Sri Lanka.
He further said that with over 1,000 commercial grades and over 1,500 formulations encompassing literally every conceivable application, SERVO serves as a one-stop shop for complete lubrication solutions in the automotive, industrial, and marine segments.
It was also noted that it comes to Sri Lanka as a compliment from the parent company as it will not add any extra cost to LIOC or consumers.
As LIOC exports Servo brand of lubricants to Maldives, they would be exporting to Indonesia as well in the near future.
Lanka IOC is a leader among Sri Lanka Oil Companies and the Indian Oil’s subsidiary in Sri Lanka, is the only private oil company other than the state-owned Ceylon Petroleum Corporation (CPC) that operates retail petrol/diesel stations in Sri Lanka and a key player in engine oil in Sir Lanka market. It has over 150 fuel stations in Sri Lanka.
Taken from Daily Mirror
Lanka IOC mulls expanding Trinco bunkering operationsSeptember 1, 2016 3:22 pm
Sri Lanka’s IOC a visible player among Sri Lanka Oil Companies, a subsidiary of Indian Oil Corporation, is to expand their existing bunkering operations at Trinco port as the prospects for this business line are promising, particularly given the strategic positioning of the port and its significant potential for growth, the company said.
Trincomalee is the world’s 5th best natural harbour and provides an excellent opportunity to meet the bunker need of the vessels operating on the Bay of Bengal – Western Countries shipping route.
LIOC commenced bunkering operations in Trincomalee in June last year and to optimize the storage and operating costs the company commissioned storage of bunker fuels at its Trincomalee Terminal in February 2016.
The company currently operates one bunker barge with capacity for 400 MT of 380cst fuel and 400 MT of MGO.
The forex income generated from this business line has enabled the LIOC to hedge against its foreign currency payments in the purchase of oil imports.
During the 2015/16 financial year, bunkering has achieved a volume growth of 20 percent although revenue declined by 31 percent due to the reduction in international prices, the company’s annual report showed.
Operating from Colombo and Trincomalee harbour, LIOC is the 2nd largest operator for bunkering in the island’s bunkering market supplying fuel oil and diesel for vessels at berth and anchorage at the Colombo and Trincomalee ports, which accounted for 13 percent of company’s revenue.
During the Indian PM’s visit to Sri Lanka, Ceylon Petroleum Corporation and LIOC agreed to jointly develop the upper tank farm of the China Bay installation in Trinco.
Lanka IOC, already operates 15 oil storage tanks out of 99 tank farm in Trinco and each storage tank has a capacity of around 12,000 tonnes.
Meanwhile, petroleum sector unions recently charged the government for trying what they called ‘to privatize’ the Trincomalee tank farm to India and Hambanthota oil and bunkering business to China.
Convener for Petroleum Union Collective D J Rajakaruna said the government allows other countries to make profits out of promising bunkering business in Trinco and Hambanthota without letting the business to the state owned CPC.
He further charged that the government is also planning to form a separate company under CPC for aviation business with a view to ‘privatize’.
Taken from – LBO
Lanka IOC a prominent figure among Sri Lanka oil companies slashes prices of own fuel varietiesAugust 10, 2016 11:23 am
A prominent figure among Sri Lanka oil companies and Sri Lanka’s only private oil company that operates fuel retail outlets and a key figure among Sri Lanka oil companies, Lanka IOC PLC said it was reducing the prices of two of its own fuel brands from midnight, yesterday.
Accordingly, the price of a litre of Xtra Premium Euro 3 (petrol) and Xtra Mile (diesel) was reduced by Rs.2 each.
The revised prices of Xtra Premium Euro 3 (petrol) and Xtra Mile (diesel) will be Rs.121 and Rs.97 per litre, respectively.
Sri Lanka has fixed prices for diesel and petrol but special varieties don’t come under them. The government is yet to introduce a transparent cost-reflective pricing mechanism for the fuel retailing sector.
Taken from Daily Mirror
Sri Lanka IOC providing quality engine oil in Sri Lanka, to enter Malaysia, Indonesia lubricant marketsAugust 27, 2015 11:15 am
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)
Lanka IOC to invest Rs 400m on more outletsAugust 26, 2015 4:50 pm
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)
Lanka IOC Sets 10,000 mt Bunker Sales Target in TrincomaleeJuly 23, 2015 10:40 am
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 2015July 23, 2015 10:20 am
Extracted 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
Lanka IOC seeks tax reductionJune 30, 2015 9:59 am
Adapted from the Island article by Ifham Nizam
Lanka IOC has once again requested the government to either increase fuel prices or give them a tax reduction.
They had separate meetings with Finance Minister Ravi Karunanayake and Power and Energy Minister Patali Champika Ranawaka. Both ministers asked for more time, while appreciating IOC’s role here. Ministry officials told The Island that the government wouldn’t be in a position to take a decision till the energy pricing formula was introduced. The formula is expected to come into effect after September this year.
Lanka IOC Managing Director, Subodh Dakwale yesterday contacted for comment said discussions were on but nothing had come of them. He said if the present situation continued they would take the matter up with the Lanka IOC Board. Dakwale said that, on their part, they often discussed energy conservation and on how to improve the quality.
Earlier this month, the Ceylon Petroleum Corporation recommended that the Power and Energy Ministry request the Treasury to consider a further tax reduction on fuel imports along with the forthcoming oil pricing formula. However, nothing concrete had taken place in this regard, an official said.
Due to selling fuel below market price in keeping with government policy, Lanka IOC had been suffering losses since the government ordered price reductions in fuel early this year, Dakwale said, adding that tax alone came to between 56 and 58 per cent of the cost of petrol which he called a huge by any means.
Dakwale said they believed the proposed pricing formula had to be discussed along with duty reductions. “We have suggested now that the duty be reduced in a big way as we cannot increase the price of a litre of fuel,” he added.
LRA rates Lanka IOC at AAAFebruary 2, 2015 8:38 am
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