Sri Lanka Chevron posts 45% higher profit

Sri Lanka’s Chevron unit said net profit for the June 2009 quarter shot up 45% to Rs400 million (US$3.48 million) from a year ago, mainly because of higher margins. Chevron Lubricants Lanka said in a stock exchange filing that sales for the three months rose 2% to Rs2.1 billion (US$8.70 million). Chief Executive Kishu Gomes said demand is likely to remain subdued for the rest of the year, with growth only possible from next year. The company’s performance in the first half ending June 2009 was virtually flat compared with last year, with net profit up only 2% to Rs632 million (US$5.50 million) and sales up 1% to Rs4.4 billion (US$38.32 million). Gomes attributed Chevron Lubricants Lanka’s June quarter result mainly to a combination of improved profit margins, higher export volumes and better cost management. It also made gains from interest income. (July 22, 2009)