CPC to improve refinery efficiency & financial viability by 2019

Mar 03, 2017 (LBO) – Sri Lanka’s state-owned Ceylon Petroleum Corporation has set out several targets to be achieved by 2019 with a view to minimize losses.

The operational profit of CPC for 2015 increased from 12.4 billion rupees in 2014 to 27.6 billion rupees in 2015.

However, due to rupee depreciation and huge finance costs on bank borrowings, the overall net loss in 2015 was around 18.4 billion rupees.

In a proposal made to the finance ministry, the state refiner said it’s targeting improvement in output as a percentage of capacity from the existing 66 percent to 73 percent by 2019.

CPC wants to ensure financial viability by reducing debt to assets ratio from 165 percent to 99 percent by 2019.

The corporation is also expected to improve productivity and management efficiency through institutional structural changes.

The targets however has been made under several assumptions including the tax structure which is assumed to remain the same, and that international market price will increase by 10 percent.

CPC also expects to adjust the selling price in line with the international market price.

The import value of CPC in 2015 amounted to 1,867 million US dollars which represented nearly 10 percent of the total imports of the country.

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