Chevron Sri Lanka unit June net down 34-pct to Rs526mn
ECONOMYNEXT – Chevron Lubricants Lanka’s net profit in the June 2017 quarter fell 34% to Rs526 million from a year ago as floods triggered by heavy rains dampened demand for lubricants.
Sales fell 19% to Rs.2.28 billion during the quarter while earnings per share (EPS) were Rs2.19, according to interim results filed with the Colombo stock exchange.
Chevron Lubricants Lanka’s share last traded at Rs160. EPS for the six months to 30 June 2017 were down 25% to Rs5.62 with sales down nine percent from the year before.
Bigger storage facilities at the new plant of Chevron Lubricants Lanka had helped the firm improve profit margins in 2016, its chairman Farrukh Saeed said in its annual report.
Stockbrokers Bartleet Religare Securities attributed the June 2017 quarter fall in profit of Chevron Lubricants Lanka to floods which had reduced demand for lubricants.
“Reduced top line contribution from the indirect channel following the torrential rains trickled down to the bottom line,” it said in a note on the June quarter results.
Chevron Lubricants Lanka’s June quarter EPS of Rs 2.19 were below its forecast of Rs2.99.
“The variance was due to revenue decline though the lower cost of goods sold could not match the revenue shortfall,” it said.
Lower sales were mainly due to the loss of revenue from the indirect channel which could be mainly attributed to the impact from floods that hindered the demand for lubricants, Bartleet Religare Securities said.
(COLOMBO, July 19, 2017)