Sunday Dec 15, 2024
Sunday Dec 15, 2024
Monday, 24 June 2019 00:00 - - {{hitsCtrl.values.hits}}
The 17th Annual General Meeting of Lanka IOC PLC for the financial year 2018-19 was held on 19 June in Colombo. The AGM was duly attended by all board members namely Chairman Ranjan Kumar Mohapatra, MD Manoj Gupta, Lakshman Watawala, Amitha Gooneratne, Vigyan Kumar and D.R. Paranjape.
Addressing the shareholders, Mohapatra, Chairman Lanka IOC and Director (HR), IOCL said, “Lanka IOC will continue to play a key role in energising and enriching the nation, supporting the endeavour of the Government of Sri Lanka, for developing the nation into a strategically important economic power in the region.”
He also added that Lanka IOC has made remarkable progress in its operations and world-class fuels are now being offered to our valued customers in Sri Lanka for use in new generation vehicles. With reference to the company’s financial performance, Mohapatra said, “The turnover of Lanka IOC for the financial year 2018-19 touched Rs. 86 billion and despite a challenging year with regard to volatility in petroleum prices and steep depreciation of LKR, the company was able to record profit of Rs. 403 million in comparison to previous year losses of 744 million.
The Chairman highlighted the issue of partial implementation of pricing mechanism as a key area of concern impacting the volumes and profitability of the company and channel partners as a result of which LIOC is constrained to adopt the differential pricing to mitigate the losses. He 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 considering the fact that the prices of auto fuels in Sri Lanka are very low as compared to the retail selling prices in the neighbouring countries.
The lower oil prices result in higher consumption which adversely affects the balance of payments and exchange rates. 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 signed off thanking the valued shareholders for their support and promising that Lanka IOC would continue to work towards achieving energy security in Sri Lanka while focusing on offering world-class technology, products and services as part of the company’s customer-oriented growth agenda. He further added that company will focus on other business segments and new opportunities not only to de-risk the business profitability but also ensure creating long term value for our shareholders on sustainable basis.
The AGM was concluded with unanimous approval by shareholders of all the agenda items proposed at the AGM including declaration of a dividend of Rs. 0.75 per share. This is for the seventh consecutive financial year that the company shall be distributing dividend to its shareholders.
