China Rerun Chemical Group reported sharp improvements in sales and profits for the first half of its fiscal year. Gulf Oil Corp. Ltd., on the other hand, said performance of its lubricants business was flat for the year ended March 31.
China Rerun reported sales volumes of 8.1 million liters for the six months ending Feb. 28, an increase of 31.7 percent from the same period a year earlier. Sales revenue rose 34.4 percent to RMB 164.7 million (U.S. $26.4 million), thanks both to increased volume and better selling prices, which rose an average of 2 percent.
Pre-tax profit for the first half of this fiscal year was RMB 45 million, an improvement of 68 percent. Gross margin climbed to 30.8 percent, up from 27.3 percent in the first half of last year.
The Daqing, China-based lubricant supplier said demand was especially high for oils used in petrol-powered cars, construction equipment and farming machinery. The company introduced three new agricultural lubricants to try to accommodate demand from the farming sector.
Officials said the company should continue to grow and that it has the financial standing to buy other Chinese lubricant suppliers. China Rerun listed on the London Stock Exchange last year.
Our listing in London now provides a platform for organic growth which, coupled to the Groups robust financial base, also places it in a strong position to seek out acquisition opportunities within its highly fragmented domestic market, Executive Chairman Xinghe Wu said.
Gulf Oil Corp. Ltd. said the 2013-2014 operating profit for its lubricant business was almost unchanged from the previous year. The units operating profit for the year ended April 30 was 105.46 crore rupees (1.05 billion rupees or U.S. $17.7 million), compared to 105.68 crore rupees in 2012-2013.
Officials said the business increased its sales and market share of motorcycle oils and that it acquired new direct customers in the mining and infrastructure construction industries. These successes essentially offset falloffs that it attributed to Indias economic decline, including decreases in sales of commercial vehicles and slowdowns in sales of passenger vehicles and two-wheelers.
Net sales revenue for the fourth quarter ended April 30 increased 8 percent to 255 crore rupees.