Colombian oil and gas company Terpel reported hefty increases in gross profit for its lubricants segment in Colombia and Peru, its two major geographical markets, attributing the improvements in part to price increases it instituted and improvements in the logistics situation for obtaining raw materials.
In Colombia, the company reported that lubricant segment gross profit surged 45% in the second quarter to 106 billion pesos (U.S. $25.9 million), compared to 73 billion pesos in the same quarter last year. Lubricant sales volume decreased 6% to 6 million gallons.
Terpel said its margins in Colombia recovered during the quarter thanks to price increases the company had carried out gradually to counteract the increase in the costs for base oils and additives, due to global scarcity and an exchange rate devaluation in the country.
In Peru, where Terpel operates a blending plant, the company reported that lubricant segment gross profit jumped 42% in the second quarter to Col$71 billion, compared to Col$50 billion, thanks to stabilization of costs and overcoming the disruption in the logistics chain for the supply of raw materials, a situation that had been present over the last year. Lubricant sales volumes in Peru grew 9% in the second quarter to 5 million gallons.
The company also reported increased profits in Ecuador and Panama, where its lubricants segment has smaller presences.
In Ecuador, Terpel reported lubricant segment gross profit increased 1% to Col$1 billion. Lubricant sales volume declined 14% in the region in the quarter.
In Panama, gross profit for the lubricants segment jumped 31% to Col$2 billion, which the company attributed to an improvement in sales costs for products. Sales volume jumped rose 7% to 200,000 gallons, mainly due to the recovery of sales to workshops and automotive parts 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.