Petro Gains

Nov 24, 2013 (LBO) – Sri Lanka’s state-run Ceylon Petroleum Corporation has reached break-even level and made a marginal loss after adjusting for losses on derivatives, finance ministry report said. The CPC had made a 3.8 billion rupee profit in the nine months to September 2013 but made an accounting loss of 3.7 billion rupees after a 7.6 billion rupee charge for losses on oil derivatives.

CPC lost out on derivatives it bought during a commodity bubble in 2008 when oil prices collapsed when a US Fed generated credit bubble deflated.

In the nine months to September the CPC had posed revenues of 390 billion rupees against 515 billion rupees for the full year 2012, and had cost of sales of 386 billion rupees, showing that the utility was making gross profits.

It had interest charges of 12.3 billion rupees for the nine months (18.3 billion rupees for the full year 2013).

Outstanding bank borrowings were 203 billion rupees by end September 2013, down from 211 billion rupees on December 2012.

CPC was expected to post 520 billion rupees in revenues, 3.5 billion rupees in losses after making an 8.6 billion rupee charge for oil derivatives and its loans would come down to 190 billi