Chevron Lubricants Lanka PLC, the local unit of US-based multi national saw its December quarter (4Q14) net profit falling 5 percent year-on-year (yoy) to Rs.558 million amid a decline in its top line, the financial accounts released to the Colombo Stock Exchange showed. The earnings per share weakened to Rs.4.65 from Rs.4.92.

 The revenue for the quarter under review fell 3 percent yoy to Rs.2.72 billion while cost of sales also fell 2 percent yoy to Rs.1.79 billion. The gross profit for the period stood at Rs.946 million, down 4 percent yoy.

 The operational profit for the quarter also fell 8 percent yoy to Rs.676.2 million, amid 38 percent increase in administrative costs.

 The finance income of the company fell 41 percent yoy to Rs.39.1 million, presumably due to the prevailing lower interest rate regime. As at March 31, 2014, the company had Rs.4.56 billion as retained earnings. The company’s net profit for FY14 rose 8 percent yoy to Rs.2.74 billion, with the top line growing 3 percent yoy to Rs.11.5 billion.

The earnings per share improved to Rs.22.89 from Rs.21.10.

The finance income during the year fell 54 percent yoy to Rs.129.4 million. Chevron Lanka will be one of the companies that will be affected by the government’s decision to tax companies with profits in excess of Rs.2 billion for tax year FY13/14, in addition to normal corporate taxes. The tax will be one-off, the government said.