Chevron Lubricants Lanka reports mixed 2Q results

Chevron Lubricants Lanka PLC reported a mixed financial performance for the second quarter of 2024 (2Q24), with significant contractions in earnings and revenue, yet notable gains in operating profit and a strong first half performance.

The company’s earnings for the second quarter were recorded at Rs.747.7 million, marking a 5.9 percent decrease year-on-year (YoY) and a substantial 46.7 percent drop from the previous quarter. 

Revenue for the quarter saw a marginal contraction of one percent YoY to Rs.5.28 billion, a significant decline of approximately 25 percent compared to the first quarter of 2024 (1Q24). Despite these declines, Chevron Lubricants Lanka PLC managed to increase its operating profit by 3 percent YoY to Rs.1.04 billion.

However, it recorded a 4 percent dip in finance income and a notable 60 percent surge in finance costs.

The profit before tax for the quarter stood at Rs.1.07 billion, a 6 percent YoY decline. 

On a positive note, the company’s performance in the first half of 2024 (1H24) showed resilience, as the profit before tax expanded by 9 percent YoY to Rs.2.81 billion and profit after income tax expense grew by 10 percent YoY to Rs.1.95 billion.

In its latest annual report, Chevron Lubricants Lanka PLC expressed cautious optimism for 2024. The company observed signs of demand recovery in certain segments, though not uniformly across all areas.