Singaporean independent lubricant blender AP Oil reported higher net profit but lower sales for the second half of 2021 and for the full year.
AP Oil’s net profit grew 27% to Singaporean $1 million (U.S. $739,000) for the six months ending Dec. 31, improving from S$820,000 in the same period in 2020. Revenue for the second half of last year shrank 4% to S$28 million, declining from $29.1 million
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For the full year, the company’s net profit also rose 27% to S$2.7 million, compared to S$2.2 million in 2020. Full-year sales decreased 3% to S$55.6 million, down from S$57.1 million. The company trades base oil, chemicals and other finished products. AP Oil manufactures lubricant and specialty chemicals.
Gross profit decreased 1% to S$4.3 million in the year’s second half, while full-year 2021 gross profit rose 15% to S$10 million.
The blender markets automotive, industrial and marine lubricants under the AP Oil, SIN-O and Polaris brands. It has a blending plant in Singapore. Its joint venture, AP Saigon Petro, operates a facility in Vietnam.
“Global oil and raw material prices are expected to remain volatile in 2022 amidst the changing macroeconomic and geo-political settings as well as COVID-19 pandemic mutations and fallouts,” the company commented in its financial statement. “The current severe labor shortage in Singapore is affecting our production activities, and we are unable to operate at the desired capacity to meet customer demands.”
The company said its management will continue to seek new business opportunities and strengthen market bases with the objective of enhancing profitability during “these extraordinary years.”