Earnings Up at Thai Oil, Chev Lanka, Tide Water

Lube operations of Thai Oil, Chevron Lanka and Tide Water Oil Co. reported gains in second quarter earnings while Yips saw a marginal decrease in first-half sales.

Thai Oil Groups lube and base oil segment posted a 55 percent gain in profit year over year for its quarter ended June 30, despite a 35 percent plunge in sales revenue.

The subsidiary of state-owned PTT recorded a second quarter profit of 524,000 baht (U.S. $14,709). In the same period last year, its earnings were 337,000 baht. This is despite a fall to 4.8 million baht in quarterly sales revenues compared to 7.3 million baht last year, and a drop in price per metric ton of its key product - 500 solvent neutral API Group I base oil - to U.S. $766/t, from $1,108/t a year before.

Bangkok-based Thai Oil said the price drop is primarily due to a continuous increase of regional base oil supply since the third quarter of 2014.

However, the company added that this years second quarter was much better than its first, thanks to higher demand from the regional agricultural industrys engine lubricant replacement season, and to maintenance turnarounds at base oil refineries in China, Japan and South Korea.

Still, with a new Group II refinery in the United Arab Emirates and ExxonMobils capacity expansion at its Group II plant in Jurong, Singapore, prices for Group I are flat or on a downward spiral, the company said in a statement released this month.

Chevron Lubricants Lanka PLC reported second quarter earnings of 2.8 million Sri Lankan rupees (approximately U.S. $21 million), a three percent increase over last years Rs 2.7 million. Operating profit for the lube supplier was up 13 percent, to Rs 1.0 million for the June 30-ended quarter. Total profit for the period was up 18 percent year over year.

The Colombo-based subsidiary of energy giant Chevron also had a significant spike in cash at the end of this period compared to that of the year before, recording Rs 2.8 million versus Rs 678,050 in 2014.

Indias Tide Water Oil Co. recorded year over year gains in net profit and operating income, along with reduced expenses in its June 30-ended quarter. The Kolkata-based suppliers profit was Rs 257 million (U.S. $1.9 million) compared to Rs 177 million last year. Its operating income crawled up 3.3 percent to Rs 253 million, and its total expenses decreased marginally to around Rs 220 million.

Hong Kong-based Yips Chemical reported revenue of HK $180 million (U.S. $23.2 million) for its lubricants division in the six months ended June 30, down 16 percent from HK $215 million last year.

The Chinese supplier of Pacoil and Hercules branded lubes said that sales of automotive lubricants continued to grow this period, while sales of industrial lubricants dropped slightly.

Yips said its gross profit margin improved by 1.9 percent year on year and that the loss from operations was lower than last year, at HK $989,000.