Despite numerous challenges throughout FY 2022-23 LIOC continued with exemplary performance throughout the year with a remarkable increase in revenue by nearly 213 % Y-o-Y from Rs. 90 billion to Rs. 282 billion, mainly in view of the 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 Y-o-Y volume posting an increase of nearly 15%, restricted by QR code quotas. LIOC has posted Net Profit after Tax of Rs. 37.69 billion for the period between April 2022 to March 2023. The Earnings per share of the Company also increased from Rs. 9.05 for Year 2021-22 to Rs. 70.79 during 2022-23, 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 Y-o-Y, significantly affecting the year’s financial performance. The introduction of Social Security Contribution Levy w.e.f 1 October 2022, also led to an additional outgo of Rs. 1,465 million during the year.
Describing the financial year’s performance, LIOC MD 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 maximising value creation for our stakeholders and at the same time, giving back to 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 footprint in the country with the commissioning of 37 new sheds taking the total number of sheds to 250. We promise to enhance our role in the energy security of the country in all possible dimensions in the coming months.”
With LIOC expanding its footprint 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 the 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 the economic slowdown, devaluation in local currency and sharp fluctuations in the 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 the international oil prices due to geo-political factors continues to remain a cause of concern.
LIOC also continued to demonstrate its commitment of giving back to society by putting words into action by engaging in regular CSR initiatives including the donation of Rs. 200 million to the President’s Fund, donating for the worthy cause of upliftment of Elders’ Homes that house several elderly individuals, signing of an agreement with MEPA, Sri Lanka for taking up cleanliness of two beaches at Dehiwala and Modera for a period of one year to support the clean seas campaign by reducing marine pollution, etc. In addition, LIOC has regularly contributed to government hospitals by donating essential medicines for the help of needy patients.