India’s GP Petroleums reported a steeper net loss for the quarter ended June 30, while the lubricants unit of Balmer Lawrie and Savita Oil posted huge increases in profits, compared to the same period last year. Profits were also up for the first half of the year for Singapore’s United Global and AP Oil.
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GP Petroleums reported a net loss of Rs 4.8 crore (47.8 million Indian rupees or U.S. $643,000) for the quarter ending June 30, 129% worse than an Rs 2.1 crore net loss in the same period last year. The Ipol-branded lubricants supplier turned a net profit of Rs 4.1 crore in the same quarter in 2019.
The Mumbai-based company’s revenue from operations grew 97% to Rs 155.3 crore, from Rs 78.9 crore. This was also 16% higher than Rs 134.5 crore in the same quarter in 2019. Other income fell 72% to Rs 0.6 crore.
Total expenses jumped 98% to Rs 161.7 crore in the quarter, up from Rs 81.8 crore
The company’s manufacturing segment includes production and marketing of lubricating oils and greases. The segment’s revenue increased 120% to Rs 79.7 crore, improving from Rs 36.2 crore, but 18% below the Rs 97.3 crore mark in the same quarter in 2019.
Revenue for its trading segment, which includes base oil trading activities, was Rs 75.6 crore, a 78% increase from Rs 42.6 crore and 103% higher than Rs 37.2 crore in the same quarter in 2019.
In 2020, the company noted in regulatory filings that the COVID-19 pandemic had significantly affected its operations and results for the quarter ending June 30. The company resumed operations at its plant on April 29 last year and at all warehouses in phases.
Balmer Lawrie’s greases and lubricants segment posted consolidated operating profit of Rs 7.4 crore for the quarter, a huge 1,133% jump from Rs 0.6 crore in the same period last year. This rebound in operating profit remained 21% below the company’s Rs 9.4 crore mark in the same quarter in 2019.
The Kolkata-based supplier of Balmerol-branded lubricants said revenue for its greases and lubricants segment nearly doubled in the quarter, to Rs 112.9 crore, improving from Rs 58.7 crore. This was also 23% higher than the segment’s Rs 91.9 crore operating profit for the same period in 2019.
Mumbai-based Savita Oil reported a net profit of Rs 77.5 crore for the quarter ending June 30, a 624% jump from Rs 10.7 crore in the same quarter in 2020. This was also a healthy 173% improvement over its Rs 28.4 crore net profit in the same period in 2019.
Total income for the quarter rose 126% to Rs 613 crore, up from Rs 271.4 crore. Total income also improved on the same period in 2019 – Rs 540.6 crore – by 13%.
The company’s revenue from petroleum products rose 130% to Rs 595.8 crore, from Rs 259 crore. That also improved 13% on the segment’s Rs 528.7 crore revenue in the same quarter in 2019.
United Global Ltd. reported net profit of $3.2 million for the first half of this year, improving 92% from $1.7 million in the same period in 2020. The company attributed the increase mainly to an increase in its share of profits from United Oil Co., a joint venture with Spanish refiner Repsol. United Global owns 60% of the venture, and its share of profits in the period grew 50% to $3.4 million.
United Global, which manufactures and markets finished lubricants while also supplying specialty chemicals, said its revenue skyrocketed to $2.7 million for the first half of the year, a 3,174% increase from a year earlier. United Oil’s profit for the first six months jumped 72% to $6.6 million, on revenue of $66.2 million, a 95% increase. Sales were boosted by an increase in sales volume and higher average selling price, the company noted.
“We are pleased with the sustained recovery of our lubricants business” in the first half of fiscal year 2021, United Global Executive Director and CEO Jacky Tan said in the company’s earnings news release. “However, we are expecting tougher business conditions ahead, particularly with the resurgence of COVID-19 variants in the region.”
In addition to the lubricants joint venture with Repsol, United Global has wholly owned operations that trade base oils and supply lubricant additives. It also has four other business pillars: United Supply Chain, which is involved in logistics and shipping; United Innovations, which manufactures nano-fiber oil absorbent materials; United Fuels, which trades petrol-related products; and United Renewables, which looks for opportunities in materials recycling and sustainability.
AP Oil reported that its net profit for the six months ending June 30 increased 27% to 1.7 million Singapore dollars (U.S. $1.3 million), improving from S$1.3 million in the same period last year. This was also up 60% from S$1.1 million in the first half of 2019.
Revenue edged down 1% to S$27.7 million, down from S$28 million. This was down 7% from S$29.7 million in the first six months of 2019.
The blender markets automotive, industrial and marine lubricants under the AP Oil, SIN-O and Polaris brands. It has two blending plants in Singapore and a facility in Vietnam, operated by its joint venture, AP Saigon Petro. The blending plant in Vietnam has production capacity of 25,000 tons per year and 4,000 tons of tank storage for base oil, additives and finished products.