Profits tumbled for three Bangladesh lubricant companies – MJL Bangladesh, Lub-rref and Eastern Lubricants Blenders Ltd. – for the quarter ended March 31, compared to the same period last year. The quarter was the second of the fiscal year for each company.
MJL Bangladesh reported consolidated net profit dropped 36% to 445.3 million taka (U.S. $4.8 million) for the quarter, compared with 699.8 million taka in the same period in 2021.
Higher expenses and financial changes, along with lower income from operations, may have contributed to the lower profits. Administrative and selling expenses totaled 238.4 million taka, a 43% increase from 167.1 million taka. Income from operations fell 24% to 796.4 million taka, from 1.1 billion taka.
Consolidated net sales revenue for the quarter increased 31% to 7.3 billion taka, improving from 5.5 billion taka.
Products made by MJL include automotive, industrial and specialty lubricants. Automotive lubricants include motor oils for passenger cars, motorcycles and buses, along with related lubricants, including gear oils, automatic transmission fluids, greases and brake fluid.
Headquartered in Dhaka, the company is a joint venture between Jamunsa Oil Co. – owned by Bangladesh’s government – and EC Securities Ltd. MJL supplies ExxonMobil’s Mobil lubricants brand – both by blending the products locally and importing them – and its own Omera Lubricants brand.
Net profit for Lub-rref dropped 65% to 58.5 million taka in the quarter, tumbling from 168.3 million taka. Operating profit for the period declined 12% to 100.3 million taka.
Net sales revenue slipped 9% to 365.6 million taka.
Headquartered in Chittagong, Bangladesh, the company markets finished lubricants under its BNO brand name.
Eastern Lubricants Blenders Ltd. reported steep declines in profit and revenue for the quarter ending March 31, the second quarter of its fiscal year.
The lubricating oils and greases blender reported a net profit of 413,000 taka for the quarter, a 99% drop from 31.7 million taka in the same quarter last year. The company posted a 3.9 million-taka operating loss for the quarter, compared with a 39.9 million operating profit.
Sales were also way down at 3.9 million taka, a 97% decline from 146.3 million taka.
Based in Chittagong, Bangladesh, Eastern Lubricants is a subsidiary of Bangladesh Petroleum Corp., which is state owned. Previously Eastern focused on supplying blended lubricants to three sister subsidiary companies – Padma Oil, Meghna Petroleum and Jamuna Oil Co. After private lubricant suppliers took much of those companies’ market share, Eastern looked into other avenues to supplement its income, including the sale of bitumen.
For July 2021 through March 2022, the company reported 48.1 million taka in sales of bitumen, but no sales of base oil. For the same period from July 2020 through March 2021, the company sold 51 million taka in bitumen and 134.9 million taka in base oil.