Chevron Lubricant Lanka tops Rs 2 b profit

Sanjeevi JAYASURIYA

Chevron Lubricant Lanka Limited has recorded the highest profit so far exceeding Rs two billion for the first time since its inception in 1994. The company recorded Rs 2.116 billion profit after tax for the last financial year up from Rs 1.50 billion in 2010, a growth of 33 percent. The earnings per share also grew to reach Rs 16.67 in 2011 as against Rs 12.51 in 2010.

We consider this to be a significant performance due to the saturated lubricant market at present, Chevron Lubricant Lanka Managing Director and CEO Kishu Gomes told Daily News Business. The turn over recorded 17 percent growth despite an increase in the cost of sales by 18 percent due to the increase in prices. The cost savings made the gross margins to reach 14 percent growth to record 20 percent and 19 percent increases in the operating profit and PAT during the last year, he said.

Last year was a challenging year for the country’s lubricant industry where volatile global market conditions had a negative impact. We were compelled to pass on the rising cost to consumers by two upward revisions in prices during the year.