Despite a slight dip in revenues, Thai lubricant producer PSP Specialties reported a 37% jump in net profit for the first half of 2025, thanks mostly to lower costs and reduced financing expenses.
The Bangkok-based company had total revenue of 6.87 billion (U.S. $215 million) from January through June, down 0.6% from TBH 6.91 billion from the same period of 2024. Net profit, though, rose to TBH 530 million, from TBH 385 million.
The company gave much of the credit for profit improvement to reduced costs. It mentioned stable crude oil prices but also cited its own cost containment efforts.
“The increase in gross profit and gross profit margin of sales and services is mainly due to the lower cost of raw material costs, resulting from efficient inventory management and price negotiation with suppliers,” it stated in a press release about its results.
Management cited potential threats to the business going forward, including armed conflicts and the shift toward electric vehicles. The number of electric vehicles registered in Thailand rose more than 9% each of the first two quarters of this year – quarter to quarter. But PSP added that it expects “a full transition to electric vehicles will require additional time for infrastructure development and has not yet had a significant impact on the company operating results.”
At the same time, the company gave multiple reasons for optimism. It is investing to develop products used in electric vehicles, such as coolants. It also predicted healthy growth in lubricant demand in Southeast Asia, partly due to tariff wars between the United States and China.
“Elevated tariffs may benefit ASEAN [Association of Southeast Asian Nations] manufacturers as companies relocate production to mitigate long-term trade risks,” it said.