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LIOC still ambitious with plans for Sri Lanka
Tuesday, 19 December 2006 - 8:45 AM SL Time
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Lanka IOC Ltd. (LIOC) which incurred a heavy loss of Rs. 1,721 million during the recently concluded financial year still feels confident in catering to the Sri Lankan market while broadening its prospects.
Indian Oil Corporation Ltd. and Lanka IOC Chairman Sarthak Behuria forwarding the company annual report to its shareholders states that FY 2005/06 posed many challenges to its operations in Sri Lanka and it gives a sense of accomplishment by exceeding the customer expectations against a total turnover of Rs. 37,493 million.
`The FY 2005/06 posed many challenges to LIOC. However, at the end of the day, we have a sense of accomplishment in the fact that we exceeded the expectations of the motoring public of Sri Lanka in providing the best fuelling experience at our petrol and diesel stations. The fact that a sizeable number of customers had continued to patronize Lanka IOC petrol and diesel stations despite higher prices, bares testimony to the value the company provides to the people of Sri Lanka,` Sarthak Behuria stated.
During the FY 2005/06 Lanka IOC sales have increased by 36 per cent reaching Rs. 37.49 billion from Rs. 27.58 billion during the previous financial year. With this significant increase Lanka IOC claims that its market share has also increased to 21.5 per cent from 17.7 per cent.
`The removal of subsidy by the Government of Sri Lanka with effect from July 1, 2006, coupled with the steep increase in the prices of crude oil and petroleum products in the international market have forced us to price the products in a manner which makes commercial sense. The Lanka IOC long-term plans can only be achieved through bold and positive initiatives like this. Setting-up of a state-of-art lube blending plant, a modern quality control laboratory, investments in modernising the oil jetty and installation at China Bay, are some of the many projects identified for next financial year,` he said.
At present, the Sri Lankan petroleum market, with a demand of around 3.7 million metric tonnes per annum (MMTPA) and a refining capacity of 2.2 MMTPA, meets the shortfall in supply through imports of about 1.5 million tonnes of products.
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