Slippery Oil

Nov 13, 2009 (LBO) – Lanka IOC, the Sri Lankan unit of Indian Oil Corp., has said it made a loss of 203 million rupees in the September 2009 quarter, partly on losses from hedging in oil imports. The firm has been lobbying for lower import duties on fuel or higher retail prices which are government controlled. The company had made a net profit of 110 million rupees in the same quarter a year ago.

Sales fell 4.7 percent to 12.8 billion rupees in the period, the company said in a stock exchange filing.

LIOC’s reported a loss per share of 0.381 rupees in the September 2009 quarter compared with earnings of 0.206 rupees the year before.

“For the period ended September 30, 2009, the cost of sales includes outflow on hedging of oil imports,” a note to the accounts said.

LIOC reported a loss of 856.7 million rupees in the June 2009 quarter as it was squeezed between high taxes and government mandated prices.