August 01, 2006 (LBO) – Caltex Lanka Lubricants Tuesday reported a 16 percent spike in net profit after tax for the six months ended June this year, on the back of volume and price growth. Net profit after tax went up from 370 million to 429.7 million rupees for the first half of this year, the company reported. The company posted a profit after tax of 700 million last year.
The increase is largely due to volume growth in local and export markets, as well as a 14 percent price hike in February, Kishu Gomes, Managing Director of Caltex told LBO.
“We also capitalised on the market situation where Lanka Indian Oil Corporation had some financial difficulties that also affected availability of lubricants in the market as well as gaining some volumes from power generation business,” Gomes said.
Exports to markets like the Maldives and Bangladesh, which is a 150 million litre market and three times the size of Sri Lanka, was also strong,
Exports are currently about 10 percent of the company’s business, with lubricants shipped to Maldives, Reunion, Mauritius and marine lubricants to India.
Currently, six operators share Sri Lanka’s lubricant market, which is valued at aro