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.
A Sri Lankan government agency raided 15 retail shops in mid-February and confiscated unauthorized lubricants as part of an effort to address the increasing number of consumer complaints about sales of low-quality lubricants in the market.
S-Oil reported increased operating income for its base oil business, while SK Lubricants and Hyundai Shell Base Oil Co. each posted lower profit for the quarter ending Sept. 30. Chevron Lubricants Lanka Plc. and Lanka IOC each reported an increase in profit.
Lubricant demand volumes in Sri Lanka shrank 0.3 percent in 2018, while the sales value of those products rose 3.1 percent, according to a market report released recently by the industrys regulator, the Public Utilities Commission of Sri Lanka.
Malaysian company Hyrax Oil plans to open a lubricant blending plant next week at an oil terminal in Muthurajawela, Sri Lanka.
The Sri Lankan government invited lubricant suppliers this month to apply for the new permits that it plans to issue for producing and selling products on the island nation.
The Sri Lankan agency planning to allow more competition in the nations lubricant market was advised recently that it should instead crack down on smuggling and on sales of substandard products.
ExxonMobil has agreed to purchase Indonesian lubricant blender PT Federal Karyatama, the companies announced this week, part of a plan to expand in the Asia-Pacific region.
Chevron Lubricants Lanka Plc reported a 34 percent drop in its third-quarter profit, hurt by lower revenue and finance income. Higher expenses also hit the companys bottom line.
Lube sales in Sri Lanka were up 11.4 percent last year, as Chevron continued to hold the lions share of the 26.1 billion rupees (U.S. $170 million) market.