Chevron Lubricants Lanka profits up on input prices, sales fall

Chevron Lubricants Lanka Plc said profits in the quarter ending June 2013 rose 5.5% from a year earlier to LKR562 million LKR (USD4.2 million), despite falling revenues on lower raw material prices.
The company reported revenues were down 5.1% from a year earlier, but cost of sales fell 9.6% over the same time.
Managing Director Kishu Gomes said raw material prices were stable in the global market, allowing for higher profits despite weaker sales.
“Lubricants consumption has remained sluggish during the first half of the year mainly due to reduced demand from thermal power plants, [and] adverse weather conditions affecting the agricultural & fisheries sector…,” he told shareholders in an interim review.
“The decline is seen across all consumer segments in almost all geographies while [the] Bangladesh market started to recover from an initial setback due to various macro issues.”
He said there was an overall market contraction with longer drain intervals as a result of consumers moving to higher technology lubricants.
(July 26, 2013)