Sri Lanka Lubricant Market Stagnant in 2013!

Sri Lanka’s lubricant market is estimated to have stagnated or contracted further in 2013, on top of a decline in 2012, Chevron’s unit in the island said while cautioning against state attempts to expand trade freedoms of the people.

“We estimate that the lubricants consumption would have remained stagnant or reduced further on top of the 4 contraction in 2012 due to adverse weather conditions in the first quarter of the year, reduced vehicle imports and longer oil drain intervals,” Chevron Lubricants chief Kishu Gomes told shareholders.
“The reduced demand from the thermal power sector also contributed to the lower consumption of lubricants.”

Thermal power generation has since picked up amidst dry weather. Sri Lanka’s lubricant market is estimated at around 55 million litres a year.

While revenues fell to 11.2 billion rupees in 2013 from 11.7 percent in 2012, cost fell to 7.0 billion rupees from 7.9 billion, helping boost profits to 2.5 billion rupees from 2.2 billion rupees.

Gomes said raw material prices were favourable and the firm had improved efficiencies.