The lubricant segment of Colombian oil and gas company Terpel attained large increases in gross profit in the first quarter in Colombia and Peru, its two major geographical markets, despite decreased sales volumes in each country.
For Colombia, the company reported that lubricant sales volumes declined 4% for the quarter ending March 31 to 6 million gallons, compared to the same quarter last year. Lubricant gross profit there rose 26% to 83 billion pesos (U.S. $18.6 million). Terpel noted in its earnings release the recovery of pricing margins in the first quarter in Colombia, thanks to price increases that were being carried out gradually to offset the increase in the costs for base oils and additives, due to a situation concerning shortages and the devaluation of the foreign exchange rate.
In Peru – where Terpel operates a large blending plant – the company’s lubricant sales volumes decreased 3% to 4 million gallons for the quarter, while lubricants segment gross profit surged 70% to Col$68 million. The company attributed the rise in gross profit to gradual increases in prices that allowed a recovery in margins and to lower costs.
The company also reported increased gross profit in Ecuador and Panama, where its lubricants segment has smaller presences. In those markets the company also said price increases helped bring a gradual recovery in lubricant price margins.
In Ecuador, Terpel posted a 10% decrease in lubricant sales volume to around 1 million gallons, while gross profit grew 16% to Col$9 billion.
In Panama, sales volume increased 8% to 200,000 gallons, while gross profit jumped 48% to Col$3 billion, leveraged by the higher volume together with lower product costs, the company said.
With more than 50 years in the commercialization of fuels, lubricants, and convenience stores, Bogota-based Terpel operates in Colombia, Peru, Panama, Ecuador, and the Dominican Republic. The company started in Peru in 2014 under the Gazel brand name and then in 2018 under the name Terpel. For lubricants, it offers the Mobil brand at all its services stations and distribution points.