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February 21, 2017

Volume 7 Issue 8

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Profits Dip at Continental, Chevron Lanka, Tide Water

Chevron Lanka, Continental Petroleums Ltd. and Tide Water Oil Co. profits each took hits in the quarter ended Dec. 31.

India’s Continental Petroleums Ltd. reported a 44 percent year-on-year drop in its third quarter net profit, as the lubricant maker’s sales declined and finance costs rose slightly.

The Jaipur-based company posted a standalone net profit of Rs 8.75 lakh (Rs 875,000 or U.S. $13,095) in the quarter ended Dec. 31, compared to Rs 15.6 lakh in the corresponding quarter last year, according to a regulatory filing.

The company, which sells Mobolene-branded lubricants and greases for automotive and industrial applications, reported that quarterly net sales fell 15 percent to Rs 5.1 crore (Rs 51 million) from Rs 6 crore a year ago. Total income from operations declined 17 percent to around Rs 5.7 crore.

Total expenses fell approximately 17 percent annually to Rs 5.5 crore, while finance costs rose 2 percent to approximately Rs 3.6 lakh.

The company’s facility in Behror is the largest blending plant in the northwestern state of Rajasthan, with capacity of 8,000 metric tons per year, according to its website.

Lubricants maker Tide Water Oil Co. (India) Ltd. reported a 15 percent decline in its third quarter net profit as total expenses increased.

The supplier of Veedol-branded lubricants posted a standalone net profit of Rs 22.8 crore in the October-to-December period, down from Rs 26.8 crore in the same period last year.

However, Tide Water reported that its net sales increased 3.5 percent during the quarter, to just shy of Rs 284 crore from Rs 274.2 crore a year ago. The company services over 50,000 retail outlets in India through its network of 50 distributors and more than 650 dealers.

Total expenses rose 7 percent to nearly Rs 260 crore during the quarter, the Kolkata-based lube maker said in a regulatory filing. Other income increased 2 percent to Rs 8 crore while tax expenses decreased 23 percent to Rs 9.6 crore.

Chevron Lubricants Lanka PLC’s fourth quarter profit experienced a decrease of 3 percent, down to 692 million Sir Lankan rupees, while its revenue remained nearly unchanged.

The Colombo, Sri Lanka-based firm, a subsidiary of U.S.-based Chevron, said its revenue slipped by a negligible amount compared to the prior year, to Rs 2.9 billion (U.S. $19.5 million).