Chevron Lubricants Lanka 3Q earnings down on flat top line

Chevron Lubricants Lanka PLC, the country’s lubricant market leader in terms of market share, saw its third quarter earnings ended September 30, 2023 (3Q23) falling amid flat revenues and higher cost of sales.
The company reported earnings of Rs.3.76 per share or Rs.902.5 million for the quarter under review, compared to Rs.6.07 per share or Rs.1.45 billion reported for the corresponding period of last year.

The company’s revenue for the quarter edged up by just 2 percent year-on-year (YoY) to Rs.6.1 billion while the cost of sales rose 15 percent YoY to Rs.4.1 billion.

The operating profit for the period fell 19 percent YoY to Rs.1.3 billion.

Meanwhile for the nine-month period ended September 30, 2023, the company reported earnings of Rs.11.93 per share or Rs.2.88 billion compared to earnings of Rs.13.50 per share or Rs.3.23 billion a year ago.
The revenue for the period was Rs.17.7 billion, down 11 percent YoY. The income tax expense for the period rose 71 percent YoY to Rs.1.26 billion, reflecting higher tax rates.

Chevron Ceylon Limited owns 51 percent of the issued shares of Chevron Lubricants Lanka PLC. JB Cocoshell entered the top 20 shareholders in 3Q23 while Nuwara Eliya Property Developers was the main seller of shares during the quarter.