The Ceylon Petroleum Corporation (CPC) recorded a net profit of Rs. 29.2 billion during the first six months of 2026, following a Rs. 41 billion subsidy provided by the Government between April and June, according to the Ministry of Finance.
The Ministry’s Mid-Year Fiscal Position Report 2026 revealed that CPC’s net profit increased by 71.8%, compared to Rs. 17 billion recorded during the corresponding period in 2025.
However, the report highlighted that the increase in profitability came despite a sharp decline in the corporation’s gross profit, which fell by 72.9% to Rs. 8.9 billion from Rs. 32.8 billion a year earlier.
According to the Ministry, CPC’s operating profit increased to Rs. 23.9 billion during the first half of 2026, compared to Rs. 11.1 billion during the same period last year, mainly due to the Treasury subsidy received between April and June.
The Government provided approximately Rs. 57 billion in fuel subsidies to participants in the domestic petroleum market during the second quarter of 2026, of which Rs. 41 billion was allocated to CPC.
The financial support was introduced to minimise the impact of rising global petroleum prices following the escalation of the Middle East conflict.
Meanwhile, CPC’s net sales revenue increased by 40.4% to Rs. 576.6 billion during January–June 2026, compared to Rs. 410.7 billion during the corresponding period last year.
The Ministry attributed the increase mainly to higher domestic fuel prices following disruptions to global energy supplies.
CPC’s petroleum import bill also increased sharply by 73.8% to US$1.74 billion during the first six months of 2026, compared to approximately US$1 billion during the same period in 2025.
As a result, the corporation’s cost of sales rose by 50.2% to Rs. 567.6 billion, compared to Rs. 377.9 billion a year earlier.
The report further revealed that CPC recorded an unrealised foreign exchange gain of Rs. 7.2 billion, compared to Rs. 3.5 billion during the corresponding period in 2025, contributing to its overall financial performance.
The Finance Ministry said the subsidies were aimed at stabilising the domestic petroleum industry and reducing the impact of the Middle East conflict on consumers and the wider economy. (Newswire)