A rebound in base oil sales helped Eastern Lubricants Blenders achieve massive improvements in profit and revenue for the quarter ended March 31, while MJL Bangladesh’s profit fell 7%, in part due to rising administrative and selling expenses.
Lub-rref’s operating profit declined on lower sales revenues.
According to a World Bank update earlier this year, Bangladesh made a rapid recovery from the COVID-19 pandemic, supported by prudent macroeconomic policies. “But the economy now faces considerable challenges with global economic uncertainty, rising inflationary pressure, energy shortages, a balance-of-payments deficit and a revenue shortfall,” the World Bank said. Balance of payments is the record of all international financial transactions made by the residents of a country.
Eastern Lubricants Blenders
Eastern Lubricants Blenders posted a net profit of 5.2 million taka for the most recent quarter – third of the fiscal year for all three companies – up sharply from 413,000 taka in the same period a year earlier. The company’s operating profit rebounded to 2 million taka, improving from an operating loss of 3.9 million taka.
One factor helping boost sales revenue was a rebound in sales of base oil. For the six-month period from July 2022 through March this year, the company reported selling 655 metric tons of base oil, fetching 124.7 million taka in sales revenue, compared to no sales of base oil in the July 2021 through March 2022 period. By comparison, the company reported 134.9 million taka in base oil sales in the period from July 2020 through March 2021.
Based in Chittagong, Eastern Lubricants is a subsidiary of state-owned Bangladesh Petroleum Corp.
MJL Bangladesh
MJL Bangladesh reported consolidated net profit of 412.1 million taka (U.S. $3.8 million) for the quarter, compared to 445.3 million taka in the same period in 2022. Consolidated net sales revenues climbed 15% to 7.7 billion taka, but administrative and selling expenses increased 26% to 299.2 million taka may.
MJL’s products include automotive, industrial and specialty lubricants. Based in Dhaka, the company is a joint venture between Jamuna Oil Co. – owned by Bangladesh’s government – and EC Securities Ltd. MJL supplies ExxonMobil’s Mobil lubricants brand – both by blending the products locally and importing them – and its own Omera Lubricants brand.
Lub-rref
Lub-rref’s operating profit for the period fell 12% to 86.1 million taka. Net sales revenue decreased 8% to 337.5 million taka.
Also based in Chittagong, Lub-rref markets finished lubricants under its BNO brand name.