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May 5, 2015

Volume 7 Issue 4

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MJL’s 2014 Sales Up, SK’s Down in 1Q

Bangladesh’s MJL Ltd. reported a 10 percent increase in revenue and a 19 percent increase in profit for its lubricants operations in 2014. SK Lubricants, of South Korea, underwent a dip of 17 percent in both revenue and profit during 2015’s first quarter compared to the year-earlier period.

MJL, a producer of lubricants and licensed supplier of ExxonMobil’s Mobil branded products in Bangladesh, reported lubricant sales revenue of 7.1 billion taka (U.S. $92 million) in 2014 versus 6.4 billion taka in 2013. Sales of lubricants produced at its Chittagong blending facility were up 12 percent and sales of imported Mobil products in the local market were 10 percent higher as well.

The company’s exports sales shrank in 2014 – both for its locally produced and imported lubricants –  to a total of around 59 million taka, which is a decrease of about 20 percent from the approximately 75 million taka of export sales revenue it reported in 2013.

Annual profit for MJL’s lubricants division was 1.7 billion taka in 2014, up from 2013’s 1.5 billion taka.

Seoul-based SK Lubricants reported revenue of 620 billion won (U.S. $570 million) for the quarter-ended March 31, compared to 66.3 billion won in 2014’s corresponding quarter.

The base oil and lubricant manufacturer’s operating profit dropped to 57 billion won compared to 66.3 billion won in 2014.

“The operating profit fell slightly as the drop in the global oil prices led to weaker [API] Group III base oil margin,” SK noted in its earnings announcement. “The market for Group III base oil is anticipated to grow gradually as there is a rising demand for environmentally-friendly and high-efficient products.” SK did not address the worldwide oversupply of Group III products.