Chevron sales top Rs 4.6 b in first half

The Chevron Lubricants Lanka has performed well in the first half of this year compared to the corresponding period last year.

The company recorded Rs 4.6 billion sales for the first six months compared to Rs 4.4 billion in corresponding period last year. It is 4 percent increase.

The gross profit was 1.5 billion an increase of 7 percent from Rs 1.4 billion. The operating profit was 1.2 billion an increase of 19 percent from Rs 983 million. The net profit after tax Rs 789 million 25 percent increase from Rs 632 million.

"We were able to grow in top line due to two factors. The increase in volumes and the increase in price that was effective from June this year. If the volumes continue to grow during the year the performance of the company will be better than last year, Chevron Lubricant Managing Director Kishu Gomes told Daily News Business.

The contribution to the growth from North and the East and rest of the country is significant and also export volumes to Bangladesh and Maldives too recorded an increase. However, the price increase in raw materials were a drawback, he said.

The company managed the operational expenses well and able to show 24 percent bottom line growth compared to last year.

"We are moving forward with more investments and business especially in the North and East regions which is starting to deliver results. The reduction of vehicle duty has a positive impact on the lubricant market. The 15 percent duty surcharge on raw materials removal from the last budget helped the company as well, he said. SJ