LIOC registers superlative performance in FY 2022-23 despite challenging environment

Despite numerous challenges, Lanka IOC PLC (LIOC) continued with exemplary performance throughout the year with remarkable increase in revenue by nearly 213 percent year-on-year (YoY) to Rs.282 billion in FY 2022-23, largely due to high international oil prices as compared to the last year. 
With enhanced consumer confidence, the sales volume during the quarter increased from 512,831 MT to 589,144 MT with YoY volume posting an increase of nearly 15 percent, restricted by QR code quotas. 
LIOC posted net profit after tax of Rs.37.69 billion for FY 2022-23. The earnings per share also increased from Rs.9.05 to Rs.70.79, reflecting LIOC’s relentless pursuit to maximise return for stakeholders. However, with extremely high borrowing costs and unprecedented LC confirmation costs due to significant country risk perceived by banking institutions, the finance costs during the year were nearly Rs.992 million as against Rs.50 million YoY, significantly affecting the year’s financial performance. 
The introduction of Social Security Contribution Levy w.e.f 1st Oct’ 22, also lead to an additional outgo of Rs.1465 million during the year.
Describing the financial year’s performance, LIOC Managing Director Dipak Das said, “With our strong commitment to ensure regular and uninterrupted fuel supplies to the nation, we have strived hard throughout the year towards maxmising value creation for our stakeholders and at the same time returning back to the society.
We reiterate our resolve to continue efforts to not only live up to the expectations but go beyond. We are glad to share that LIOC has enhanced its footprints in the country with commissioning of 37 new sheds taking the total number of sheds to 250. We promise to enhance our role in energy security of the country in all possible dimensions in the coming months.”

With LIOC extending its footprints across the length and breadth of the island nation, they are focusing on further strengthening their national presence to play a national role in meeting country’s energy requirements.
Das further stated that while all the business verticals of LIOC remain committed to contribute, bunkering and lubricants faced stiff competition mainly due to demand uncertainties in view of economic slowdown, devaluation in local currency and sharp fluctuations in international oil prices for which the company is leaving no stone unturned in taking appropriate measures, in their efforts to close the financial year with an unprecedented financial and operational performance.
The periodical revision in retail prices (RSP) of auto-fuel in line with the common pricing formula has been beneficial for the people at large in view of recent RSP reductions which LIOC has also implemented in line with CPC prices.
However, the significant volatility in international oil prices due to geo-political factors continues to remain a cause of concern, the company said.