Hi-Tech Lubricants Ltd. reported a steep net loss and a 27% decrease in lubricant sales for the quarter ended Sept. 30, citing the impacts of supply chain and exchange rate issues, while Chevron Lubricants Lanka Plc and Lanka IOC posted strong increases in profits and sales amidst news reports of an easing of the country’s food and fuel shortages.
Based in Lahore, Pakistan, Hi-Tech said in its earnings report’s director’s review that the decline in lubricant sales “was caused by reluctance by various parts of the supply chain to build stocks in the wake of unprecedented movement in the exchange rate, as well as volatility in economic and political conditions across the country. This, along with the devastating floods in major parts of the country, halted almost all supplies to south side of the country.” The company said sales in the latest quarter also suffered due to strong sales in the previous quarter when several distributors invested heavily in stocks before price changes became effective.
According to an Oct. 31 Bloomberg report citing government statistics, Sri Lanka’s inflation slowed in October for the first time in a year, as the country’s food and fuel shortages eased up.
Hi-Tech Lubricants
Hi-Tech Lubricants reported a consolidated net loss of Rs 289.6 million (U.S. $1.3 million) for the quarter ended Sept. 30 – the first quarter of its fiscal year that ends on June 30, a steep loss from an Rs 167 million consolidated net profit in the same period last year.
The segment’s net sales revenue for the quarter fell 27% to Rs 1.3 billion, down from Rs 1.8 billion.
The company overall reported a total net loss of Rs 280.3 million for the quarter, compared to a net profit of Rs 104.4 million in the same period last year. Total net sales for the quarter were up 28% at Rs 3.9 billion.
Chevron Lubricants Lanka
Colombo-based Chevron Lubricants Lanka reported a 43% jump in net profit to Rs 1.5 billion (U.S. $4.1 million) for the third quarter, improving from Rs 1 billion. Operating profit was up 30% at Rs 1.7 billion. Sales climbed 16% to Rs 6 billion.
Chevron Lubricants Lanka imports, blends, distributes and markets lubricants and greases, and operates a blending plant in Sapugaskanda.
Lanka IOC
Lanka IOC reported that its net profit surged 4,300% to Rs 12.4 billion for the quarter ended Sept. 30, the second quarter of its fiscal year, up from Rs 281.6 million. The company’s operating profit likewise jumped 5,190% to Rs 14.2 billion, from Rs 268.3 million.
Its sales skyrocketed 3,268% to Rs 88 billion, compared to Rs 20.6 billion.