Lanka IOC declares dividend of Rs. 1.25 per share at 15th AGM

The 15th Annual General Meeting of Lanka IOC PLC for the financial year 2016-17 was held on Thursday 29 June in Colombo. 

During the past 15 years, the company has shared its rich experience of petroleum marketing with its valued customers thereby transforming the entire retail fuel selling landscape in the country. The company has modernised the retail outlets to the International standards ensuring customer delight, whenever they fuel their vehicles at LIOC retail outlets. 

The AGM was concluded with unanimous approval by shareholders of all the agenda items proposed at the AGM including declaration of dividend of Rs. 1.25 per share.

Addressing the shareholders at the AGM, LIOC Chairman Shri B.S. Canth stated that the Government of Sri Lanka, under the dynamic and visionary leadership of the President of Sri Lanka and Prime Minister of Sri Lanka, is implementing an ambitious agenda to transform the nation into a strategically important economic power in the region and Lanka IOC sees for itself, a key role to play in fuelling the growth of the economy and in enriching the lives of the Sri Lankan public.

The company has achieved a total turnover of Rs. 81 billion with 14% impressive growth over the previous year. Despite a challenging environment with regard to fluctuating petroleum prices, the company has delivered outstanding growth in earnings and value for shareholders. The Chairman emphasised the need of pricing formulae for auto fuels so as to ensure long term sustainable operations of oil companies in Sri Lanka and for the long term benefit to the economy of the country.

Reduction in international petroleum production prices, optimisation of entire supply chain management, better inventory management policies, rigorous financial risk management policies, cost reduction in all spheres contributed to profitability. The physical performance of the company was also quite good and sales quantity went up in all the business segments. All the business segments viz. auto fuels, lubricants, bitumen and bunkers contributed to the better results of the company.  

The Chairman specifically mentioned that while the company continues to face various business challenges, their focus and commitment to community service remained steadfast and unwavering. He mentioned that corporate social responsibility is an integral part of company and it permeates throughout the organisation. The company recognises its responsibility to make positive difference in the communities in which it operates.

Its long-standing mission of serving the society created a solid pathway to Corporate Social Responsibility. In the year under review, the company’s CSR programs concentrated on the themes of education, health and environmental protection. LIOC also partnered with Sri Lanka Cricket as their official lubricant partner and sponsor of the Sri Lanka ‘A’ Team for the year 2017.

Lanka IOC also invested in improving service standards offered by the franchisee owned retail outlets. Regular training programmes were conducted in the year under review for retail outlet attendants to enable them to offer higher levels of service standard to customers. The quarterly dealer training programmes that Lanka IOC has been conducting over the last few years also continued with greater emphasis being made on safety and proper working condition for retail outlet attendants, customer safety, best ethical business operations and customer service. 

Training programmes were also conducted by Lanka IOC for its employees and channel partners both locally and also in India to help them understand the current trends and future developments of the petroleum industry.

The company was ranked the eighth biggest listed company in Sri Lanka in terms of turnover by LMD and also ranked amongst the top 30 best companies in Sri Lanka by Business Today Group in December 2016. The National Chamber of Commerce in Sri Lanka awarded Lanka IOC with the National Business Excellence Awards in 2016 in the ‘Trading Category’. These accolades are key to measure success beyond financial performance and therefore, are indicators of LIOC’s strong position in Sri Lanka’s energy sector. 

The LIOC Chairman appreciated the employees of LIOC and its Senior Management Team, for their continued commitment and dedication towards the Company which has made a good year better and also thanked shareholders for the continued support and assured them that LIOC will continue to work hard to meet their expectations.

The Chairman also expressed sincere gratitude to the Government of Sri Lanka, its valued customers, bankers, consultants, contractors, dealers, suppliers and vendors for their continued support.