Monday 28 April 2014

Sri Lanka's Chevron Lubricants unit revenues down, profits flat

Apr 28, 2014 (LBO) - Sri Lanka's Chevron Lubricants Plc said revenues fell 5.6 percent to 2.98 billion rupees in the March 2014 quarter from a year earlier, but profits fell at a lower 0.8 percent to 1.24 billion rupees, helped by a price hike.

The firm reported earnings of 6.36 rupees for the quarter. The stock closed at 269.90 up 1.90 rupees Friday.

"The marginal reduction in earnings is due to a variety of macro and micro challenges," chief executive Kishu Gomes told shareholders.

"Lubricants consumption has remained sluggish in the local market while there has been an increase in export volumes."

While revenues fell 5.6 percent, costs fell at a faster 11.1 percent to 1.74 billion rupees allowing gross profits to go up 3.4 percent to 1.24 billion rupees.

Gomes said a price increase in January 2014 was expected to improve margins.

Interest income fell 31 percent to 44.9 million rupees as cash reserves halved to 1.2 billion rupees and inventories rose to 3.3 billion rupees from 1.9 billion rupees.

Gomes said inventories were built up to meet the demand during a plant relocation.

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