Profits Down for Chevron Lanka


Chevron Lubricants Lanka PLCreported a 51 percent drop in profit year over year to 267.1 million Sri Lankan rupees (U.S. $1.5 million) in its fourth quarter, and a 22 percent decline in full-year profit to just under Rs 2 billion.

Operating profit for the three months ended Dec. 31 stood at Rs 368 million, down 50 percent from Rs 737 million in the same period of 2017. For the full year, operating profit declined 19 percent to Rs 2.7 billion.

In interim financial statements released to the Colombo Stock Exchange, Chevron Lubricants Lanka reported that its revenues from lubricants declined by 21 percent to Rs. 2.2 million in the fourth quarter, down from Rs 2.8 million during the year earlier period. For the full year, revenues reached Rs 10.9 billion, down 2 percent from 2017.

Although Chevron Lubricants Lanka officials were not available for comment, industry observers believe intense price competition in the market is one reason for the decline in Chevron Lankas earnings. According to data from the Public Utilities Commission of Sri Lanka, Sri Lankas lubricant market dynamics are shifting, with Chevrons market share dipping, and Laugfs and ExxonMobil each increasing its market share in the third quarter of 2018.

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