Ceylon Petroleum Corporation (CPC) is contemplating to raise millions of dollars through an overseas bond issue with the approval of the Sri Lankan monetary authorities, officials said.
The request to raise foreign dollar bonds was made to the government authorities but there was no positive response as yet, they added.
The proceeds of the issue will be used to fund working capital requirements for the normal course of business.
The bonds will be listed on the Singapore Exchange. The CPC’s operational losses reached to Rs. 4,294 million in the first four months of 2019.
This was due to the increased international oil prices combined with the absence of pricing mechanism for the products used in aviation and power generation sectors and kerosene.
However, due to the exchange gained together with the introduction of cost-reflective pricing formula for auto fuel effective from May, 2018, 39 the CPC’s overall profits reached to Rs. 16,021 million in the first four months of 2019.
The CPC recorded a negative net-worth of Rs. 262,811 million at the end of April, 2019.
In this context, it is important to optimally utilize the refinery capacity of the CPC in order to reduce the overall cost while employing proper operational strategies to reduce the inefficiencies and maximum utilization of unionized human resources, officials said.
(LI)