Gulf Oil reports lower lube profits in Q1

India’s Gulf Oil Corp. Ltd., which is headquartered in Hyderabad, Andhra Pradesh, reported revenues of Rs23,935.28 lakh (US$49.8 million) in the first quarter ending June 30, 2009, 7% higher than the same period a year ago. Net profits were 142% higher at 2,096.12 lakh (US$4.3 million). Despite a 6% growth in revenues from its lubricants business during the period (Rs11,934.94 lakh or US$24.87 million, net profits declined by 34% to Rs454.67 lakh (US$947,532). In its Fiscal Year 2008-09 annual report, the company cited the challenging business conditions, including the highly volatile raw material costs, for the lubricant industry. “Further, the economic slowdown, drop in automobile production and lower finance availability led to shrinkage in demand and overall negative growth for the industry, as compared to a 2-3 % growth normally witnessed in preceding years. Commercial vehicle sales which account for a major share of lubricants sales fell by over 33%,” the report said. (August 3, 2009)