BPs lubricants business profits were down, and net revenues were up for Cosan Lubrificantes in the second quarter, compared to 2013s second quarter.
In its second quarter earnings statement, London-based BP said that its lubricants business reported an underlying replacement cost profit before interest and tax of $315 million in the second quarter, down 15.3 percent from $372 million in 2013s second quarter. The total reached $622 million for the first half of 2014, down 13.2 percent from the year earlier period.
Replacement cost profit or loss reflects the replacement cost of supplies and is arrived at by
excluding inventory holding gains and losses from profit or loss, according to BPs supplementary information provided with its earnings statement.
The lower result was due to restructuring programs and foreign exchange effects, the company stated in its earnings statement. The positive long-term performance trend continues to reflect execution of our strategy, including delivery from our premium brands and focus on high growth markets.
Eastman Chemical completed its acquisition of BPs global aviation turbine oil business in June.
Net revenues from sales of lubricants, resale of base oil and other products and services of Cosan Lubrificantes added up to 403.9 million Brazilian reais (U.S. $177.9 million) for the second quarter, up 4.6 percent from a year earlier, due to an increase of 6.9 percent in volumes sold, especially driven by increased base oil volumes, which offset the drop in sales of finished lubricants.
The company noted the cost of goods and services it provided increased 11.2 percent in the second quarter, caused mainly by higher volume sold and the foreign exchange rate impact, which affects the costs of importing base oil.
According to Cosan, its lubricants segment results include the manufacturing and distribution of Mobil and Comma lubricants, resale of base oil and automotive specialties in Brazil and in 40 other countries through two plants located in Rio de Janeiro, Brazil, and in Kent, United Kingdom.
Sao Paulo, Brazil-based Cosan, a producer of sugar and ethanol products since 1936, expanded through acquisitions beginning in 2008 to become a distributor of fuels and lubricants.
Novvi, a joint venture between Cosan and U.S. research firm Amyris, develops renewable synthetic base oil from sugarcane.