Colombian oil and gas company Terpel reported large increases in gross profit for its lubricants segment both for 2023 and the fourth quarter in Colombia and Peru, its two major geographical markets for lubricants.
Fourth-quarter factors cited included higher margins due to reduce costs and raising lubricant prices.
Terpel reported that for its Colombia operations in 2023, lubricant sales volumes declined 7% to 25 million gallons (85,000 metric tons), compared to 27 million gallons. However, the segment’s gross profit surged 58% to Col$434 billion (U.S. $112 million), compared to Col$274 billion.
In Peru – where the company operates a large blending plant – lubricants gross profit jumped 40% to Col$295 billion, compared to Col$211 billion. The company’s lubricant sales volumes in the country increased 6%.
For the quarter ended Dec. 31, Terpel’s lubricants gross profit jumped 74% to Col$126 billion. Sales volume decreased 5% to 6 million gallons in the quarter. Terpel noted a recovery in margins during the quarter, thanks to price increases that were carried out gradually to counter increases in the costs for base oils and additives due to the global scarcity and devaluation of currency exchange.
In Peru, lubricants gross profit rose 44% to Col$84 billion pesos in the quarter, while the sales volume posted a 9% uptick to around 5 million gallons. The gross profit was due to an increased margin – from reduction in costs and an increase in prices – while the rise in sales volume was attributed to a greater number of purchases by automobile lubricants distributors.
In Ecuador and Panama, where Terpel’s lubricants segment has smaller presences, Terpel reported mixed results for the fourth quarter.
In Ecuador, lubricants gross profit decreased 4% to Col$9 billion, although the gallons sold jumped 25% to 910,000 million gallons.
The company’s lubricants gross profit in Panama increased 8 % to Col$2.2 billion, which the company attributed to reductions in production costs. Sales volume decreased 2% to around 100,000 gallons, which the company said was due to road closures and low vehicle turnover. Based in Bogota, 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. It offers Mobil brand lubricants at all of its services stations and distribution points.