Net profit for Thai Oil’s base oil business rose 21% for the quarter ending Sept. 30. Base oil prices were steady in the quarter, the company said, despite the impacts of depressed Chinese demand and the rainy season in the region.
Among companies in Bangladesh, MJL Bangladesh and Easterns Lubricants Blenders reported lower profits for the quarter.
Thai Oil
Thai Oil reported that its base oil business’ net profit rose to 1.3 billion baht (U.S. $37.4 million), compared to ฿1 billion in the same period last year.
Lube base oil sales revenue increased 21% to ฿7.8 billion, which the company attributed to higher product selling prices tracking crude oil prices. “However, base oil price spread over fuel oil subsided since the market was very tight,” the company noted in its earnings analysis for the quarter.
The company said that year on year, the average price per ton for 500 solvent neutral was down by U.S. $57 per metric ton to $1,272/t in the third quarter. The spread over fuel oil prices decreased from $895/t to $798/t.
Thai Oil’s base oil plant in Sri Racha, Thailand, reported a capacity utilization rate of 86% for the second quarter, compared to 88% in the same period last year. Base oil production volume dropped from 59,000 tons to 58,000 tons.
The plant can produce up to 267,000 metric tons per year of API Group I base stocks, which mainly go into industrial and marine lubricants and in engine oils for older engines.
MJL Bangladesh
Consolidated net profit for MJL Bangladesh declined 6% to 593.2 million taka (U.S. $5.8 million), compared to Tk 628.8 million.
Consolidated net sales revenue for the quarter was Tk 8 billion, up from Tk 6.6 billion.
Based in Dhaka, MJL is a joint venture between state-owned Jamuna Oil Co. and EC Securities Ltd. It supplies ExxonMobil’s Mobil brand of lubricants – some of which MJL blends and some of which is imported – and MJL’s own Omera lubricants.
Easterns Lubricants Blenders
Easterns Lubricants Blenders Ltd. reported steep drops in profit and revenue for the quarter ending Sept. 30, the first quarter of its 2022-2023 fiscal year.
The blender of lubricating oils and greases said net profit dropped 83% to Tk 297,000 for the quarter, compared to Tk 1.7 million. The company reported a Tk 4.6 million operating loss, falling further from a Tk 3.2 million operating loss.
The company’s revenue plunged 88% in the quarter to Tk 5.3 million, compared to Tk 42.8 million.
Headquartered in Chittagong, Bangladesh, Eastern Lubricants is a subsidiary of state-owned Bangladesh Petroleum Corp.