Profit Down for Chevron Lubricants Lanka

Chevron Lubricants Lanka Plc reported sharp declines in profit and sales for the quarter ending March 31, compared to the same period a year ago.

Colombo-based Chevron Lubricants Lanka posted profit of 517.2 million Sri Lankan rupees (U.S. $2.7 million) for the first quarter, down 14 percent from Rs 603.1 million in the year-earlier period.

In interim financial statements released to the Colombo Stock Exchange, Chevron Lubricants Lanka reported that operating profit declined 14 percent to Rs 713.3 million, down from Rs 837.2 million. Profit before income tax fell 14 percent to Rs 722.7 million, down from Rs 843.5 million.

Sales revenue was down 13 percent at Rs 2.8 billion, down from Rs 3.3 billion.

The company provided a disclosure letter to the stock exchange on April 27 about the impact of the Covid-19 pandemic on the business.

"Blending and filling operations are lower than normal due to the curtailed economic activities domestically and in our export markets due to the prevailing curfew and lockdown conditions," Chevron Lubricants Lanka stated in the letter. "The company is prioritizing operations to support essential services in all of our markets. The company is producing lubricant oils for essential services, such as power generation, agriculture, the fisheries sector and government transportation services."

Chevron Lubricants Lanka imports, blends, distributes and markets lubricants and greases. The company operates a blending plant in Sapugaskanda.