May 06, 2015 (LBO) – Sri Lanka’s state-run Ceylon Petroleum Corporation (CPC) reported a 1.7 million rupee profit in 2014 recording a turnaround from losses in 2013, the Central Bank said.
“As per the provisional financial statements, CPC reported a profit of 1.7 billion rupees in 2014 compared to a loss of 7.9 billion rupees in 2013,” a recently released Central Bank annual report said.
“The main contributory factor was the decline in global fuel prices during the second half of the year without a full adjustment of domestic fuel prices, resulting in a higher profit margin,”
“Improved debt recovery also helped CPC to reduce outstanding trade receivables from government entities to 34.1 billion rupees at end 2014 from 53.2 billion rupees at end 2013.”
However, the reduction in the consumption of furnace oil by the Ceylon Electricity Board (CEB) due to greater hydro and coal power generation towards end 2014 had a negative impact on the profitability of CPC, the report said.
Meanwhile, reflecting increased foreign currency borrowing from the banking sector, CPC’s total liabilities to the banking sector increased to 22.2 billion rupees from 245.6 billion rupees during the year, although rupee deposits of CPC also increased, the report said.