Sri Lanka Chevron Lubricants net up 20-pct

July 28, 2014 (LBO) – Sri Lanka’s Chevron Lubricants said profits rose 20 percent to 675 million rupees in the June 2014 quarter from a year earlier helped by wider margins.

The firm reported earnings of 5.63 rupees per share for the quarter. For the six months to June the company reported earnings of 11.99 rupees on total profits of 1.43 billion rupees, which were up 8 percent.

Chief executive Kishu Gomes said profits were up on wider gross margins.

Revenues rose 12 percent to 2.7 billion rupees and cost of sales rose at a slower 3 percent to 1.55 billion rupees, allowing gross margins to grow 26 percent to 1.15 billion rupees.

World oil prices have been stable over the past year and the firm hiked prices in January. Up to the March quarter however, the firm saw revenues fall as Sri Lanka recovered slowly from a balance of payments crisis, triggered by credit funded energy subsidies.

Finance income fell 75 percent to 20 million rupees as cash reserves were used to relocate its plant.