Chevron Lubricants Lanka information robust 2Q regardless of foreign exchange losses – Enterprise Information

Chevron Lubricants Lanka information robust 2Q regardless of foreign exchange losses – Enterprise Information







Sri Lankan lubricants market chief Chevron Lubricants Lanka PLC posted a robust efficiency in gross and internet earnings for the quarter ended June 30, 2022 (2Q22), though it incurred a international trade lack of greater than 1.2 billion rupees because of the depreciation of the rupiah in opposition to the US greenback.

The corporate reported earnings of Rs 3.50 per share or Rs 834 crore for the quarter beneath evaluation, in contrast with earnings of Rs 1.92 per share or Rs 461.2 crore reported for a similar interval final 12 months.

The corporate’s lubricant gross sales rose 124% YoY to Rs 6.1bn, whereas price of gross sales rose 86% YoY to Rs 3.3bn.

Working revenue for the interval was Rs 2.1 billion, up 268 per cent.
Nonetheless, the corporate incurred an enormous monetary price of Rs 1,259 crore within the quarter, in comparison with Rs 578.8 crore a 12 months earlier.

Of that quantity, Rs 1,250 crore was recorded as a transaction and conversion loss arising from the corporate’s international trade operations, on account of the sudden devaluation of the rupee in opposition to the US greenback.

“Because of the acute scarcity of international foreign money liquidity within the nation’s banking system, the corporate had a major proportion of business and different accounts payable denominated in US {dollars}, which have been settled primarily based on the provision of US {dollars} by means of of their banks.

Commerce accounts and different accounts payable as of March 31, 2022 have been revalued at an trade charge of 299 (LKR/USD) primarily based on the trade charge reported by the Central Financial institution of Sri Lanka.

Nonetheless, because the Central Financial institution of Sri Lanka allowed extra flexibility in trade charges, the LKR depreciated additional in opposition to the US greenback.

The trade charge reported by the Central Financial institution of Sri Lanka as of June 30, 2022 was 367.12 (LKR/USD). In consequence, the corporate recorded a internet international trade transaction (realized) and conversion loss (unrealized) within the quantity of Rs 1,250,793,090 for the interim interval between April 1 and June 30, 2022.” , point out the notes to the intermediate accounts.

In the meantime, for the six months ending June 20, 2022, the corporate reported revenue of Rs 1,780 crore, down 11% from a 12 months in the past on gross sales income of Rs 4,800 crore, up 143% year-on-year. %.

In keeping with the shadow regulator of the lubricants market, the Sri Lanka Public Utilities Fee, Chevron Lubricant Lanka had greater than 50 p.c market share within the first quarter of 2022, regardless of the entry of recent gamers out there. market.
As of June 30, 2022, Chevron Ceylon Restricted held a 51 p.c stake within the firm. The second largest particular person shareholder, Barca World, elevated its stake within the firm in the course of the three months to five.39 p.c from 4.19 p.c.


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