Chevron Lubricants June earnings impacted by lower sales

Sri Lanka’s lubricant market leader, Chevron Lubricants (Lanka) PLC posted a net profit of Rs.427 million for the June quarter, recording 3 percent decline compared to the corresponding period last year, due to lower sales resulting from COVID-19 crisis.

Chevron Lubricants reported earnings of Rs.1.78 a share in the quarter, down from Rs 1.83 a share a year ago.

The firm’s revenue fell by 8 percent year-on-year (YOY) to Rs.2.54 billion during the quarter.

In particular, the firm earlier said blending and filling operations remained lower than normal levels due to the curtailed economic activities in Sri Lanka and among its export markets mainly due to the curfew/lockdown conditions.

The company also said that it had implemented several measures to control operational expenses and to reduce capital expenditures for discretionary projects.

However, its administrative expenses shot up by 12 percent YOY to Rs.202 million during the quarter under review.

For the six month period ended June 30, 2020 Chevron Lubricants reported earnings of Rs.3.93 as share or Rs.944.2 million down from Rs.4.34 a share or Rs.1.04 billion a year ago.

The company had Rs. 1.7 billion in cash and cash equivalents at the end of the June quarter compared to Rs.869 million at the end of December 2019 quarter. Chevron Ceylon Limited has 51 percent stake in the company followed by 8.25 percent stake held by Global Master Fund LP.