Sri Lanka’s Chevron Unit said profits for the March quarter (1Q13) rose to Rs.769.8 million against Rs.661.1 million in the same quarter of the previous year, despite a drop in revenue.

The revenue during the quarter fell to Rs.3.16 billion against Rs.3.3 billion in the previous year while cost of sales fell to Rs.1.96 billion from Rs.2.24 billion.

The firm reported a finance income of Rs.65 million, up from Rs.30 million. Earnings per Share for the quarter was Rs.6.42 against Rs.5.51 in 1Q12.

According to Chevron Lanka Managing Director Kishu Gomes, lubricants consumption has remained sluggish during the first quarter mainly due to reduced demand from thermal power plants, floods-hit agricultural sector and market contraction with extended oil drain intervals as a result of consumers moving from lower tier to higher tier technology.

“Construction sector volume too has had a setback on the back of lower growth recorded in the sector,” he added.

However Gomes noted that favorable base oil prices, local currency appreciation against the US dollar contributed to increased gross margins while increased interest income contributed to the increase of net earnings by 14 percent compared to last year.