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November 22, 2016

Volume 7 Issue 4

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Thai Lube, Continental Profits Dip, Panama's Rise

Net profits for Thai Lube Base fell 69 percent during the quarter ended Sept. 30, while India’s Continental Petroleums and Panama Petrochem recorded a 43 percent decline and a 72 percent improvement, respectively.

The parent company of Thai Lube Base, Thai Oil reported last week that earnings for its base oil segment declined in its third quarter primarily due to planned maintenance during the period. Thai Lube Base had a net profit of 163 million baht (U.S. $4.6 million), down from the 521 million baht in the third quarter of 2015. Base oil revenue sank 41 percent to 2.8 billion baht compared to 4.8 billion baht.

The segment’s profit dipped due in part to a one-month planned maintenance turnaround in August and September, stated Thai Oil, which is a subsidiary of PTT Group. As a result of the turnaround, utilization of the base oil plant dipped to 62 percent for the quarter, compared to 85 percent in the third quarter of 2015. The plant, which is located in Sriracha, and has capacity to produce 282,000 metric tons of API Group I base oils.

Continental Petroleums Ltd. posted a standalone net profit of Rs 9.75 lakh (Rs 975,000, or U.S. $14,620) for the period, which was its second quarter, down from Rs 16.96 lakh in the corresponding period last year.

The company, which sells Mobolene-branded lubricants and greases, reported that net sales rose 21 percent year on year to Rs 4.45 crore during the July-September 2016 period, while total income from operations increased 6 percent on year to Rs 4.99 crore. It attributed the fall in profits to higher total expenses, which rose 9 percent to Rs 4.82 crore.

Continental manufactures various kinds of lubricants and greases for automotive and industrial applications. The company’s facility in Behror is the largest blending plant in the northwestern state of Rajasthan, with capacity of 9,000 kiloliters per year, according to its website.

Panama Petrochem Ltd. said lower total expenses and finance costs helped boost its profit. The Mumbai-headquartered company posted a consolidated net profit of Rs 9.70 crore, up from Rs 5.64 crore in the same period last year.

Total expenditure declined approximately 3 percent year on year to Rs 176.11 crore, and finance costs fell 5 percent to Rs 2.28 crore during the period. The company, which makes Panol-branded automotive oils, reported that consolidated net sales rose to Rs 193.34 crore, up 1 percent from 191.70 crore.

Panama Petrochem, which has four manufacturing units in India, also makes transformer oils, industrial oils, greases and other petroleum specialty products. The company exports its products to countries in North America, Europe, the Middle East, Australia, Africa and Southeast Asia.

It also has a manufacturing facility in Ras Al Khaimah, United Arab Emirates, with a total production capacity of 30,000 t/y. The facility is operated by its wholly-owned subsidiary, Panol Industries RMC FZE, UAE. Results of the subsidiary's business are included in the company's consolidated numbers.