United Global Ltd. reported a net profit of U.S. $66.5 million, up 764 percent from $7.7 million last year. The company in its earnings news release attributed the large increase chiefly to the sale of a 40 percent stake in its United Oil Co. Pte. Ltd. subsidiary to a subsidiary of Spains oil and gas company Repsol. The sale was completed on Nov. 26.

Under the deal announced last October, Repsol will begin blending lubricants in Southeast Asia through a joint venture with United Global. The joint venture will manufacture and supply Repsol brand lubricants in Singapore, Indonesia, Malaysia and Vietnam.

The company said in its earnings news release that, full-year revenue from the manufacturing segment slid 20.6 percent to $83.4 million, resulting mainly from a decrease in sales volume, which in turn was primarily due to slower business at United Globals Indonesia plant. However, the drop in revenue was partially mitigated by an increase in average selling price.

In addition, the manufacturing segments gross profit margin improved due to lower raw materials cost.

Revenue from its trading segment jumped to $19.1 million, compared to the previous years $3.4 million, due to an increase in sales volume from a one-off trading arrangement with a joint venture partner.

United Global is an independent lubricant blender with its own United Oil brand and trades base oils, additives and lubricants. It owns and operates two blending facilities in Singapore and Indonesia with a combined capacity of 140,000 metric tons per year. Its Indonesian facility has storage tanks with a total capacity of 17,000 t/y and has jetty access for bulk shipments by vessels with cargo capacity of up to 12,000 tons.

AP Oil

Singaporean independent lubricant blender AP Oil reported that its net profit rose 17 percent to 2.3 million Singapore dollars (U.S.$ 1.7 million), while revenue fell 20 percent to S$62.8 million due to lower trading volume. Revenue for its trading segment slumped 31 percent to S$26 million. The company trades base oil, chemicals and other finished products.

Gross profit increased 5 percent to 16.4 percent, due to improvement in gross margin by 4 percent and improved margin from manufacturing activities, according to the companys financial results announcement last week.

Its manufacturing segment accounted for 52 percent of AP Oils 2019 revenues, or S$33 million. The company manufactures lubricant and specialty chemicals.

The strong competition in the marine lubricant business in financial year 2019 is likely to continue. While introducing strategies and measures to tackle the short term crisis of Covid-19 [novel coronavirus], the groups long term plans and strategies of growing business and bolstering better performance remain, the company said in the announcement.

The companys largest market was Singapore, with a share of 58 percent of revenue, followed by China, the United Arab Emirates and Vietnam. The company markets automotive, industrial and marine lubricants under the AP Oil, SIN-O and Polaris brands. It has two blending plants in Singapore and a facility in Vietnam, operated by its joint venture, AP Saigon Petro. The blending plant in Vietnam has production capacity of 25,000 tons per year and 4,000 tons of tank storage for base oil, additives and finished products.

Chevron Lubricants Lanka

Chevron Lubricants Lanka reported a 60 percent increase in profit year over year to 434.6 million Sri Lankan rupees (U.S. $2.4 million) in its fourth quarter, and a 5 percent increase in full-year profit to Rs 2.1 billion.

Operating profit for the three months ending Dec. 31 reached over Rs 597 million, up 62 percent from Rs 368 million in the same period in 2018. For the full year, operating profit reached almost Rs 3 billion, up 6 percent.

In interim financial statements released to the Colombo Stock Exchange, Chevron Lubricants Lanka reported that its revenues from lubricants rose 15 percent to Rs 2.5 billion, up from Rs 2.2 billion in 2018s fourth quarter. For the full year, revenues reached almost Rs 12 billion, up 9 percent from Rs 10.9 billion.

According to the Public Utilities Commission of Sri Lankas most recent lubricant market report – on the second quarter of 2019 – market leader Chevron Lubricants Lankas market share rose to 40.9 percent by the end of the quarter. Ranked second, Indian Oil Corp. commanded a 12.4 percent share and Laugfs Holdings Ltd. ranked third with an 11 percent market share.