April 01, 2009 (LBO) – Sri Lanka’s Chevron unit said net profit for the 2008 financial year fell 12 percent to 948 million rupees from a year ago with high fuel price and economic slowdown reducing sales amid increasing competition. Revenue for the financial year ending December 31, 2008 rose three percent to 8.9 billion rupees, Chevron Lubricants Lanka said in its annual report.
Chairman Kevin M Kelly said the growth and day-to-day operations of manufacturing and export industries slowed during the year, “directly impacting the company’s commercial sales.”
However, he said, the company continued to pursue a strategy aimed at strengthening its brand position, and increase the customer base for premium brands.
“The company is operating in a market that has over the past two years continued to decline,” Kelly said.
“In terms of challenges to us this has been compounded by the entry of new competitors.”
But he said new opportunities may emerge with the de-escalation of the war where government forces have almost crushed the Tamil Tiger rebels.
Chevron Lubricants Lanka managing director Kishu Gomes said Cabinet approval has been granted to renew the lease of the land on which it has its blending plant for