Sri Lanka’s Chevron Lubricants revenue, profits slide continues to 2018

ECONOMYNEXT – Sri Lanka’s Chevron Lubricants profits fell 15 percent to 697 million rupees in the March 2018 quarter from a year earlier, while revenues slid 4 percent on top of a 9 percent drop last year, interim accounts showed.

The firm reported earnings of 2.91 rupees per share. The stock closed at 91.30 rupees, down 1.40 on Friday.

Revenues fell 4 percent to 2.97 billion rupees in the quarter, while cost of sales were flat at 1.71 billion rupees, and gross profits fell 10 percent to 1.26 billion rupees.

Chevron Lubricants is the former monopoly lubricant unit of state-run Ceylon Petroleum Corporation which was privatized to Caltex which later merged with Chevron Corporation.

After an import monopoly ended, the firm also enjoyed a blending monopoly, at the expense of consumer sovereignty.

Now there are three blending plants in the island, leading to competition.

Chevron told shareholders in the annual report that volumes fell 10 percent last year, amid competition and weaker purchasing power after a drought and inflation ate away at income, especially in the retail segment. (Colombo/Apr30/2018)

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