Chevron’s Lankan unit 3Q profit down 34%

The leader in Sri Lanka’s lubricant market, Chevron Lubricants Lanka PLC, saw its earnings for the quarter ended 30th September (3Q17) narrowing 34 percent year-on-year to Rs.892.9 million, the interim financial accounts showed.

This is the fourth consecutive quarter the company reported depressed profits. 

The lubricant sales for the period fell 12 percent YoY to Rs.2.8 billion. 

The company is said to have increased the prices of its product portfolio. Also, the intense competition in the market place seems to be affecting its performance.  

The earnings per share (EPS) for the period deteriorated to Rs.2.74 from Rs.4.17. 

The company declared a third interim dividend of Rs.2.50. Meanwhile, for the first nine months of the year, the company’s net profit fell 28 percent YoY to Rs.2.7 billion on sales of Rs.8.2 billion, down 10 percent YoY.

Chevron Lanka opened a state-of-the art lube blending plant in December, 2014.

The company this August exported its first consignment of Havoline engine oil to Pakistan eying for greater economies of scale. 

The company also exports its products to Maldives.

Chevron Ceylon Limited owns 51 percent of the shares in the firm, with the rest of the shares distributed widely among minority shareholders.