BP reported that the underlying replacement cost profit before interest and tax for its Castrol lubricants business was down more than 20% for the quarter ending March 31, due in part to higher costs. Nigerian lubricants blender and marketer Conoil posted a large decrease in gross profit despite higher sales revenue, also reflecting the impact of increased costs.
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London-headquartered BP said that Castrol’s underlying replacement cost before interest and tax dropped 23% to $256 million in the first quarter, compared with $334 million in the same quarter last year.
The first quarter result was lower due to ongoing additive supply shortages and higher input costs, BP said in its stock exchange filing.
Gross profit for Conoil’s lubricants segment tumbled 44% to 278.8 million naira (U.S. $671,000) in the first quarter, compared with ₦494.6 million in the same period last year.
The lubricants segment’s sales revenue surged 41% to ₦2.7 billion, improving from ₦1.9 billion.
Cost of sales for the lubricants segment skyrocketed 70% to ₦2.4 billion, compared with ₦1.4 billion.
Products sold under Conoil’s lubricants segment include transportation and industrial lubricants, greases, process oils and bitumen.
Conoil sells such products as transportation and industrial lubricants, greases, process oils and bitumen under its lubricants segment. The company was started in 1960 to market refined petroleum products and manufacture and market lubricants and household and industrial chemicals.