Results Mixed in Sri Lanka, Pakistan, Vietnam


Results Mixed in Sri Lanka, Pakistan, Vietnam

Chevron Lubricants Lanka Plc reported a drop in profit for the quarter ending Dec. 31 but a huge increase in its bottom line for the full year, while earnings surged more than nine-fold in the quarter for Lanka IOC.

Pakistan’s Hi-Tech Lubricants posted a large net loss for the quarter for its lubricants segment, while full-year profit for Vietnamese lubricant blender PV Oil Lube JSC jumped more than 300%.

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Chevron Lubricants Lanka

Based in Colombo, Chevron Lubricants Lanka reported that its fourth-quarter net profit plunged 52% to Sri Lankan Rs 431 million (U.S. $1.3 million), compared to Rs 906.2 million for the same period in 2021. For the full year, net profit decreased 7% to Rs 3.7 billion. Skyrocketing finance costs last year – which jumped 2,533% to Rs 3.1 billion – was a huge drag on earnings.

Operating profit in the fourth quarter declined 10% to Rs 972.9 million, the company said in interim financial statements to the Colombo Stock Exchange. During 2022, operating profit jumped 72% to Rs 7.5 billion.

Sales revenue in the fourth quarter increased 2% to Rs 4.7 billion. For the full year, sales revenue climbed 46% to Rs 24.6 billion.

Chevron Lubricants Lanka imports, blends, distributes and markets lubricants and greases. The company has a blending plant in Sapugaskanda.

Lanka IOC

Lanka IOC reported Rs 8.2 billion in net profit in the quarter ending Dec. 31 – the third quarter of the company’s fiscal year – a massive 825% jump from Rs 889.7 million. Operating profit jumped 920% to Rs 9.2 billion.

Revenue for the quarter also rose by a large amount – 226%, to Rs 74.9 billion.

Lanka IOC is a subsidiary of India’s public sector utility Indian Oil Corp.

Hi-Tech Lubricants

Hi-Tech Lubricants reported a Pakistani Rs 118.6 million (U.S. $419,000) consolidated net loss for its lubricants segment for the quarter ending Dec. 31 — the second of its fiscal year — a steep fall from Rs 359.7 million in net profit in the same period in 2021. The segment’s net sales for the quarter were down 35% at Rs 1.6 billion.

For the six-month period ending Dec. 31, the company’s lubricants segment posted a $408.2 million net loss, falling steeply from a $526.6 million net profit in the same period in 2021. The segment  experienced a 32% drop in net revenue to Rs 2.9 billion for the six-month period.

Despite broader macro-economic challenges and a higher inflationary environment in 2022, Hi-Tech Lubricants said in the director’s review section of financial information report for the half-fiscal year ended Dec. 31, its management remains focused on meeting the consumer expectations by, among other things, managing cost pressures through value chain optimization initiatives and tighter controls on overheads.

Based in Lahore, the company distributes South Korea’s SK Lubricants’ Zic brand of finished lubes. Hi-Tech Blending (Private) Ltd., the company’s wholly owned subsidiary, in 2018 began local blending of Fighter Brands – in-house production of SK Lubricants’ Zic lubricants.

PV Oil Lube

PV Oil Lube JSC reported that its full-year net profit for 2022 skyrocketed 334% to ₫1 billion (U.S. $42,000), improving from ₫238.8 million.

Net revenue from sales of good and providing services climbed 35% to ₫448.2 billion in 2022, compared to ₫331.5 billion in 2021.

PV Oil Lube manufactures and trades lubricating grease products and specialized lubricants, including engine, hydraulic and transmission oils.

In its 2022 annual report, PV Oil Lube noted its strong earnings results came in spite of myriad factors that impacted the Vietnam lubricant market last year, including the consequences of the COVID-19 pandemic, natural disasters and floods in the Central Vietnam region, and the ongoing impacts of the Russia-Ukraine war. The company noted that crude oil prices skyrocketed for many periods and remained at a peak, compared to recent decades, and the prices of base oils, additives and other raw material increased.

PV Oil Lube is a public joint stock company, and Vietnam Oil Corp. is the shareholder that has controlling shares.