CPC profit dips 17.9% in 1H 2025 as turnover falls on lower global oil prices

Thursday, 6 November 2025 06:12 - - {{hitsCtrl.values.hits}}

Reduces Iran debt with tea for oil barter

The Ceylon Petroleum Corporation (CPC) recorded a 17.9% decline in net profit to Rs. 17 billion during the first six months of 2025, compared to Rs. 20.7 billion in the corresponding period of 2024, as falling global fuel prices and a stronger rupee reduced its turnover and cost base.

According to the Finance Ministry’s Mid-Year Fiscal Position Report 2025, CPC’s turnover fell by 19.3% to Rs. 439.5 billion from Rs. 544.3 billion a year earlier, in line with a reduction in the cost of sales to Rs. 377.9 billion, down 19.2% from Rs. 467.7 billion recorded in the first half of 2024.

The report attributed the decline to lower international oil prices and the appreciation of the Sri Lankan rupee against the US dollar, which reduced import costs. CPC’s expenditure on petroleum imports dropped to $ 1.04 billion in the first half of 2025 from $ 1.23 billion in the same period last year.

Meanwhile, CPC has continued to reduce its external liabilities. Dues to the National Iranian Oil Company declined to $ 130.96 million by end-June 2025 from $ 191 million a year earlier, reflecting partial settlement through the ongoing Tea for Oil Barter Agreement between the two countries.

The report noted that while the appreciation of the rupee helped reduce import costs, it also translated into lower rupee-denominated revenues, contributing to the overall fall in profitability during the first half of 2025.