Lanka IOC PLC’s top line languished during the three months ended December 31, 2020 (3Q21) amid new restrictions on mobility with the outbreak of COVID-19 second wave in the country in early October and other economic activities, in comparison to the strong gains made in the earlier quarter.
However, the company reported higher profits on lower oil prices and selling and distribution costs.
Lanka IOC, Sri Lanka’s only private sector distributor of petroleum products, reported revenues of Rs.16.6 billion in the October-December 2020 period compared to Rs.19.8 billion in the corresponding period of 2019, an increase of 16.2 percent.
The company reported earnings of Rs.1.29 a share or Rs.686.9 million for the quarter compared to Rs.92 cents or Rs.489.8 million a year ago.
Meanwhile, for the nine months to December 31, 2020, the company reported net loss of 17 cents or Rs.91.3 million compared to Rs.1.44 a share or Rs.767.9 million in the same period in 2019.
The company’s share ended 70 cents or 2.62 percent lower at the close of trading last week at Rs.26.00, with a market capitalisation of Rs.13.8 billion. Revenue for the nine months was Rs.46 billion, down from Rs.59.7 billion in the corresponding period in 2019 as the company was deprived of a significant share of its business in the April-June quarter due to strict lockdowns.
The company refinanced its loans during the quarter under review. The company brought down its debt stocks to Rs.7.1 billion from Rs.13.3 billion in April 2020 perhaps due to some deceleration in sales and for working capital management purposes.
Lanka IOC is also into bunkering, bitumen and petrochemicals and is the second largest lubricant marketer in the country with a market share of 15 percent, after Chevron Lubricants.
As of December 31, 2020, Indian Oil Corporation Limited held 75.12 percent stake in Lanka IOC while Sri Lanka Insurance Corporation, which entered the top 20 shareholders list last year had 1.34 percent stake held via its life fund being its third largest shareholder.