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Bunker Business

July 22, 2011 (LBO) - The Sri Lanka unit of Indian Oil Corporation has said strong sales of bunker fuel to ships in the last three months of the last financial year helped offset losses in the previous three quarters.
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Lanka Indian Oil Corp chairman G C Daga said that during the financial year ended March 31, 2011 the company "reoriented" its business strategies by enhancing focus on profitable business lines like lubricants, bitumen and bunkering.

LIOC made profits on the sale of petrol during the year but incurred losses in the sale of diesel.

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"The positive margins realised from petrol, lubricants and bitumen helped offset the losses incurred on sale of diesel," Daga said in the company's annual report.

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"Your company re-engineered its bunkering activities by removing bottlenecks in the supply chain and by developing a new system for improved delivery," he told shareholders.

"As a result, the loss suffered in bunker operations during the first nine months was all but wiped out by our strong performance in the last quarter.

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"

The report said LIOC streamlined its bunker business with long-term supply contracts and better logistics during the last quarter of the year.

However, high prices f

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