Chevron Lubricants Lanka said this week that net profit for the nine months to September 30, 2008 was up 18 % at Rs 916 million from the previous corresponding period but noted that this was in the background of declining consumption which is seen in the fourth quarter too.
Company Managing Director/CEO Kishu Gomes said, in results released to the Colombo Stock Exchange, that “however as indicated in my previous statement, the operating profit for the third quarter recorded a 14% decline due to the steep increase in base oil prices and lower volumes. Increased finance income has helped to cushion the decline in net profit to 9%.”
He said margins and earnings are expected to be further affected in the fourth quarter as the base oil prices are still at record high levels and consumption is still declining in the market. Industry sources said that motorists were cutting down on lubricant use due to the high cost which could impact on the efficiency of their vehicles.