Bangladeshi lubricants blender Lub-rref reported a 3% decrease in net profit and a 12% drop in sales revenue on lower operating profit and higher operating expenses for the quarter ending Sept. 30, the first quarter of its fiscal year.
Net profit for Lub-rref decreased to 79.5 million taka (U.S. $771,000), down from 77.4 million taka. Operating profit tumbled 16% to 125.6 million taka, from 150.3 million taka.
Operating expenses rose 25% from 12.6 million taka to 15.9 million taka.
Net sales revenue fell to 438.8 million taka, compared to 501.3 million taka.
Based in Chittagong, Bangladesh, the company markets finished lubricants under its BNO brand name.
In August 2021, Lub-rref announced it would redirect of its initial public stock offering’s funds to build a second waste oil rerefinery instead of doing an upgrade of existing facilities that already include a rerefinery.
In a filing on the Dhaka and Chittagong stock exchanges, the company said that’s because a Bangladesh law change required separation between rerefineries and facilities that produce finished lubes. Lub-rref’s existing refinery in Chattogram, Bangladesh, is on the same site as its lube blending plant.