Terpel Posts Higher Earnings

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Terpel Posts Higher Earnings

Colombian oil and gas company Terpel reported that its lubricant segment posted increases in gross profit for the first quarter in Colombia and Peru, its two major geographical markets, boosted by higher pricing margins.

In Colombia, the company reported that first-quarter lubricant segment gross profit reached Col$131 billion (U.S. $33.3 million), a 57% jump from Col$83 billion in the same quarter last year. Lubricant sales volumes in the country were down less than 1% at 6.3 million gallons (21,000 metric tons), compared to the same quarter last year. Pricing margins continued to improve during the quarter due to price increases and currency devaluation, Terpel said in its earnings release.

In Peru – where the company operates a blending plant – Terpel’s lubricant gross profit rose 7% to Col$72 billion in the first quarter. The company attributed the rise in gross profit to higher pricing margins produced by lower costs and higher prices. Lubricant sales volumes in the country rose 11% to 5 million gallons in the quarter, which the company said was driven by higher volumes purchased by new distributors.

In countries where the company has a smaller lubricants presence, Terpel reported increased gross profit in Ecuador and a decline in gross profit in Panama.

In Ecuador, the company reported a 17% increase in gross profit to Col$10 billion. Lubricant sales volume jumped by 49% to 1.1 million gallons, compared to 710,000 gallons. Despite the segment’s sales volume only representing 1% of the company’s first-quarter sales in Ecuador, the segment’s gross profit accounted for 34% of the company’s total gross profit. Terpel attributed that to new customer wins. In Panama, gross profit fell 20% to Col$2.6 billion, from Col$3.3 billion. Sales volume in the quarter was up 4% at 170,000 gallons, which the company attributed to recovery of the business after a season of social protests and increased sales in auto repair shops and gas stations, along with sales to the industrial sector.

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