Chevron Lubricants delivers solid 1Q on economic rebound

Chevron Lubricants Lanka PLC reported stellar performance for the three months ended in March 2021 (1Q21) amid recovery in economic activities. 

Chevron Lanka reported revenues of Rs.4.4 billion in the three months ended in March 2021, up 53 percent from Rs.2.8 billion in the same three months in 2020. 

Chevron sells its products under Caltex and Texaco brands apart from its namesake brand.

Sri Lankans, who mostly remained indoors nearly a year due to mobility restrictions, made trips to their favourite destinations from around January through mid-April before authorities re-imposed controls.

This renewed activity also reflected in the gasoline use, which reached a pre-pandemic high during the same three months. 

Apart from powering the mobility sector, lubricants are also closely associated with the country’s power generation and industrial and agricultural sectors, which also reached near pre-pandemic levels during the first quarter. 

Sri Lanka’s largest lubricant market player which also has its own blending plant reported earnings of Rs.6.41 a share or Rs.1.54 billion for the quarter under review, compared to earnings of Rs.2.15 a share or Rs.517.2 million reported in the same period last year, logging as much as 198 percent jump between the two periods.

Chevron Corp. via Chevron Ceylon Limited owns 51 percent stake in Chevron Lubricants Lanka PLC, while Employees Provided Fund has 0.42 percent sake in the company being its sixteenth largest shareholder.