Chevron Lubricants Lanka Plc reported much higher profits and sales for the fourth quarter and the full year of 2021, and Pakistan-based blender Hi-Tech Lubricants Ltd. saw increased net profits and sales in its lubricants segment for the quarter ending Dec. 31.
Chevron Lubricants Lanka
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Colombo-based Chevron Lubricants Lanka reported an 89% increase in fourth-quarter profits, jumping to 906.2 million Sri Lankan rupees (U.S. $4 million) from Rs 478.6 million. For the full year, profits increased 76% to Rs 3.9 billion.
Sales revenue for the fourth quarter grew 72% to Rs 4.6 billion, and sales for 2021 were up 45% at Rs 16.9 billion.
Operating profit climbed 67% to Rs 1.1 billion in the fourth quarter, and operating profit for 2021 increased 44% to Rs 4.4 billion, the company said in interim financial statements to the Colombo Stock Exchange.
Chevron Lubricants Lanka imports, blends, distributes and markets lubricants and greases. The company operates a blending plant in Sapugaskanda.
Consolidated net profit for Hi-Tech Lubricants Ltd.’s lubricants segment reached 409.3 million Pakistan rupees (U.S. $2.3 million) for the quarter ending Dec. 31 – the second of Hi-Tech’s fiscal year – improving 37% from Rs 298.2 million in the same quarter in 2020. Net sales for the quarter totaled Rs 2.5 billion, up 14% from Rs 2.2 billion in the year-earlier period.
The company, with headquarters in Lahore, reported that fiscal six-month net revenue for the lubricants segment reached Rs 4.3 billion, a 14% increase. Six-month net profit for the lubricants segment was up 33% at Rs 603.4 million.
The company distributes the Zic brand of finished lubes from South Korea’s SK Lubricants. Hi-Tech Blending (Private) Ltd., the company’s wholly owned subsidiary, started local blending of Fighter Brands – in-house production of SK Lubricants’ Zic lubricants – in November 2018.
Including its fuels-oriented petroleum segment, the company reported net profit of Rs 292 million for the quarter, a 35% increase from Rs 215.6 million. Net sales for the quarter were up 43% at Rs 4 billion, compared with Rs 2.8 billion in the same period in 2020. The company attributed the increase in revenue and earnings to the release of demand that had been previously suppressed by the COVID-19 pandemic and economic conditions.
In the director’s review included in the financial statement, the company noted that Pakistan’s economy is on the path to recovery, supported by promising growth in both the industry and services sectors.
“Growth in industry, predominantly construction and small-scale manufacturing, and services are forecast to improve in upcoming months,” the company said. “The agricultural sector is also expected to continue supporting the [gross domestic product] growth. However, despite the signs of strong economic recovery, certain headwinds in the short term, including higher commodity prices, current account deficit and external payments, have built pressure on the currency exchange rate. Higher inaction, hike in interest rate, rising debt and expected increase in tariffs and tax hikes, together with geopolitical tensions, may pose challenges to aforesaid economic recovery.”