Eastern Lubricants Suffers Big Drop in Profits


Eastern Lubricants Suffers Big Drop in Profits

Eastern Lubricants Blenders Ltd. reported a steep drop in net profit and an operating loss on a slight decline in sales for the quarter ending Dec. 31, which is the second quarter of its fiscal year.

The Chittagong, Bangladesh-based company, which produces lubricants and trades base oils, reported that its net profit plummeted 42% to 4.3 million taka (U.S. $39,000) for the quarter, compared to Tk 7.5 million in the same period in 2022.

Eastern Lubricants posted a Tk 4.9 million operating loss for the quarter, falling from a Tk 5.7 million operating profit.

Sales for the company declined 3% to Tk 134.6 million in the quarter.

Incorporated in 1963, Eastern Lubricants is a subsidiary of state-owned Bangladesh Petroleum Corp. Previously Eastern focused on supplying blended lubricants to three sister subsidiary companies – Padma Oil, Meghna Petroleum and Jamuna Oil Co. After private lubricant suppliers took much of those companies’ market share, Eastern looked into other avenues to supplement its income, including base oil trading and the sale of bitumen.

In its annual report released last November for the fiscal year ending June 30, 2023, Eastern reported profit or loss, and sales revenue for its lubricant blending, grease blending and base oil trading segments.

For the fiscal year ended last June, Eastern reported Tk 32.4 million in segment profit for its base oil trading business, a 117% jump from Tk 14.9 million for the fiscal year ended June 30, 2022.  Base oil trading sales revenue surged 265% to Tk 236.4 million, compared to Tk 64.8 million.

Its lubricants blending segment posted a Tk 17.8 million segment loss for the fiscal year, improving slightly from a Tk 19.3 million segment loss. Lubricant blending sales increased 15% to Tk 5.1 million for the fiscal year, compared to Tk 4.4 million.

The company’s grease blending segment reported a Tk 84,000 segment loss on Tk 70,000 in sales revenue for the fiscal year, improving from a Tk 169,000 loss on Tk 68,000 in sales.

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