PSP Profits, Sales Decline in 2023


PSP Profits, Sales Decline in 2023

Thai Independent lubricant maker P.S.P. Specialties Public Co. reported drops in net profit and sales revenue for 2023, citing high raw material costs, though its net profit surged 65% in the fourth quarter.

Elsewhere in Southeast Asia, Vietnamese lubricant blender PV Oil Lube Joint Stock Co. reported a significant increase in full-year profit after tax despite a slight decrease in sales.

P.S.P. Specialties

PSP’s net profit dropped 22% to 427.5 million baht, (U.S. $12 million) for the year, compared to ฿546.4 million in 2022, according to the company’s financial statement. The company reported its gross profit declined 11% to ฿1.4 billion for the full year, while its gross profit margin decreased from 11.6% to 11.1%.

“The decrease in gross profit and margin are mainly due to the high cost of raw materials in the first half of 2023,” the company company said. “However, it gradually decreased in the second half, resulting in a slightly lower of gross profit margins.”

Full-year total revenue declined 7% to ฿12.3 billion. Revenues from sales also declined by 7% to ฿12.3 billion. PSP attributed the decrease to a decline in sales volume domestically and overseas because of a decrease in customers’ purchase orders that it attributed to market conditions and higher competition. The company noted that a decrease in grease sales volume was due partly to supply shortages and an increase in cost of lithium. It also noted that lubricant sales volumes were higher than normal in the first half of 2022.

In the fourth quarter, net profit improved to ฿102.8 billion, compared to ฿62.2 billion in the same period in 2022. Gross profit for the quarter jumped 21% to 353.6 million, and gross profit margin rose from 9.7% to 11.5%.

“The increase in fourth-quarter gross profit and gross profit margin are mainly due to the lower price of newly purchased raw materials and subsequent decrease in production cost and cost of goods sold,” PSP said about the fourth-quarter gross profit and gross profit margin.

Total sales revenue in the quarter bumped up to ฿3.1 billion, from ฿3 billion. Revenue from sales amounted to ฿2.9 billion, or 96% of total revenue, and increased 3%. The company attributed the increase mainly to an increase in sales volume, in both local and export markets. “However, the average selling price per unit was slightly lower than the same period” in 2022, the company added.

PSP produces finished lubricants, grease, rubber process oil and transformer oil. Its lubricant blending plant in Thilawa Special Economic Zone A, Yangon, Myanmar, is owned by its subsidiary, Pacific-PSP Syntech Co. It also distributes Chevron Oronite chemical additives in Thailand, Cambodia and Laos and for Authentix, a United States-based international product inspection and certification service provider.

PV Oil Lube

PV Oil Lube said in its annual financial statement that its profit after tax jumped 31% to 1.4 billion dong in 2023 (U.S. $57,000), up from ₫1 billion in 2022. Net profit from business activities rose 33% to ₫1.6 billion, compared to ₫1.2 billion. Full-year net sales revenue decreased 2% to ₫439.3 billion, from ₫448.2 billion.

PV Oil Lube produces and trades lubricating grease products and specialized lubricants, including engine, hydraulic and transmission oils. It also provides consulting services related to lubrication. PV Oil Lube is a public joint stock company in which Vietnam Oil Corp. is controlling shareholder.