LBO Home IndoChina | About Us | To Advertise | Contact Us rss LBO Mobil rss rss rss rss rss
Sanga, only Sri Lankan player in the 2015 ICC world cup team | Australia won 2015 Cricket World Cup with a 7 wicket victory over New Zealand | Facebook to focus on three themes in 2015: Zuckerberg | Sri Lanka’s President Sirisena calls for a new thinking on Asian growth strategy | Sri Lanka to ease entry barriers for FDI: Ravi Karunanayake | Sri Lanka new rulers to get Chinese support | Sri Lanka sells $100mn of 5 year development bonds; rejects all bids at 2 and 3 years | Fitch affirms HSBC Sri Lanka branch at 'AAA(lka)'; outlook stable | Sri Lanka Freedom Party yet to decide a disciplinary action who participated pro-MR rally | Sri Lanka's President appoints a new law commission | Sri Lanka’s NDB-DFCC merger awaiting new regime’s go ahead | Ultra small computer by Intel; first look in Sri Lanka | Sri Lanka's micro-finance sector to access CRIB through a new regulation | Sri Lanka to get Chinese funded hospital for kidney patients; China to support SL on alleged human rights issues | Sri Lanka Siyapatha Finance PLC rated 'A(lka)' with a stable outlook : Rating agency | Sri Lanka’s AMW Capital Leasing and Finance upgraded to 'BBB+(lka)' : Fitch Ratings                                          
Tue, 31 March 2015 01:15:03
Higher state taxes whack earnings for Chevron Texaco Lankan arm, Caltex Lubricants
20 Dec, 2006 14:53:32
December 20, 2006 (LBO) – Caltex Lubricants Lanka said Wednesday that earnings in 2007 will take a hit, after the government upped taxes on base oil, used as a raw material in manufacturing lubricants.
The government increased a three percent cess on base oil imposed in October to six percent from November 18, with the cess computed on the Cost Insurance Freight (CIF) value, going up by ten percent.

The government has also upped the Port and Airport levy from 2.5 percent to 3 percent with effect from January next year, which will also affect earnings.

"Based on the current exchange rates and estimated base oil prices for 2007, these changes to the tariff structure is expected to negatively impact on the earnings of Caltex Lanka Lubricants to the extent of about 300 million rupees before tax and 195 million rupees after tax for the year 2007," the company said in a statement to the Colombo Stock Exchange.

Base oil prices currently range between 900 to 1300 dollars a tonne, differing based on the type of grade sold.

The company is yet to take a decision on raising product prices to cope with the increased cess and taxes, Kishu Gomez, Managing Director of Caltex Lanka, told LBO.

The local lube market is valued at about six billion rupees and is expected to grow about 4-5 percent this financial year, Gomez said.

Caltex Lanka, which is 51 percent owned by Chevron Texaco, has over 80 percent of the local market, manufacturing as well as importing lubricants for local sale, also exporting to Bangladesh and the Maldives.

Caltex shares the lubricant market with Indian Oil Corp., Servo, Mobil, Valvoline, British Petroleum/Castrol and Shell.
Your Comment
Your Name/Handle
Your Email (Your email will not be displayed)
Your Email
Receivers Email
Your Comment