BP reported that profits for its Castrol lubricants business dropped 23% in the second quarter, as adverse foreign exchange impacts and higher costs offset the positive impact of higher margins.
Meanwhile, Nigerian lubricants blender and marketer Conoil reported steep drops in profits and sales for the second quarter.
Castrol
BP reported a second quarter underlying replacement profit before interest and tax of $171 million for its Castrol lubricants business, a drop from $223 million in the same period last year.
Capital expenditures for the Castrol unit increased 2% to $44 million.
Conoil
Conoil’s lubricants segment reported a 37% drop in gross profit to ₦233.6 million in the second quarter, compared with ₦370 million.
Sales revenue for the segment fell 47% to ₦1.5 billion, down from ₦2.8 billion.
The segment’s cost of sales declined 48% to ₦1.3 billion, compared to ₦2.5 billion.
Conoil’s lubricants segment product umbrella includes transportation and industrial lubricants, greases, process oils and bitumen. The company was founded in 1960 to market refined petroleum products and manufacture and market lubricants and household and industrial chemicals.