Chevron Lubricants Lanka PLC (LLUB) recorded a 2 percent Year-on-Year (YoY) increase in net profits up to Rs. 571.4 million during the fourth quarter of last year (4Q12).
Marginal improvements in profitability were brought about despite lower turnover generation by the company during the quarter, reaching Rs.2.86 billion against Rs. 2.97 billion in 2011.
Lower volumes along with domestic and international market volatility were cited by Chevron Lanka Managing Director, Kishu Gomes, as being partially responsible for decreased revenue during the quarter.
“Volatility in the macro environment and adverse weather that resulted in prolonged floods in many districts leading to lower industry growth had a negative impact on volumes relative to the previous year as reflected in the top line.”
“Exports to Bangladesh suffered slightly due to similar macro issues while Maldives recorded a positive volume growth. During the quarter distribution and administration costs rose due to fuel price increase and sharp depreciation of the rupee against US Dollar.” Gomes said.
Finance income during both the quarter and the year ended 31st December both displayed sharp increases. LLUB gathered Rs.76.9 million in finance income during the quarter, up from Rs.30.9 million in the previous year.
Meanwhile on a yearly basis Finance Income amounted to Rs 211.2 million by the end of 2012, as compared with just Rs.53.6 million in 2011.
Income tax expense during the quarter was reduced to Rs.197.1 million, as against Rs. 214.9 million in the previous year.
Earnings per share increased to Rs.4.76 up from Rs.4.68 per share in 2011.
On an annual basis, LLUB generated a net profit of Rs.2.29 billion by the end of last year, against Rs. 2 billion previously. Turnover during the year also recorded growth from Rs. 11 billion to Rs. 11.8 billion last year.