Bigger storage at Chevron Sri Lanka unit yields margin gains
ECONOMYNEXT – Bigger storage facilities at the new plant of Chevron Lubricants Lanka has helped the firm improve profit margins, its chairman Farrukh Saeed has said.
The firm’s key performance driver during 2016 was improved margins as a result of favourable base oil prices during the first two quarters of the year, he told shareholders in the company’s annual report.
“Although base oil prices displayed an upward trend during the last two quarters, the company was able minimize its impact by importing higher parcel sizes,” Saeed said.
“This was possible due to the increased storage capacity at the new plant.”
Chevron Lubricants has commissioned a new, bigger semi-automated blending plant in December 2014, in an industrial estate at Sapugaskanda near the government oil refinery, with a capacity to blend 45 million litres annually in a single shift operation.
Saeed said volumes and revenues rose in 2016 in both its domestic and export sectors.
Export sales increased 20% compared to the previous year.
“We were able to grow the volumes in all three markets we operate in, even stepping up marine oil supplies to ships with our strong and strategic customer focus coupled with advanced lubricants technology,” Saeed said.
(COLOMBO, March 31, 2017)