Business

Chevron Lubricants records Rs. 2.6 b PAT in 2020

Chevron Lubricants Lanka, in its financial report for 2020, stated that its Profit After Tax (PAT) increased by 6% year-on-year (YoY) to nearly Rs. 2,226 million, resulting in the company’s earnings per share rising to Rs. 9.27 from Rs. 8.75 the previous year, while dividends per share stood at Rs. 9.00 per share.

Chevron Lanka Chairperson Rochana Kaul expressed that Chevron Lubricants Lanka entered the 2020 fiscal year with weakened confidence, and the company was frozen into solely virtual activities by mid-2020. Noting the pandemic’s heavy impact on Gross Domestic Product (GDP) growth, which dipped by 16.3% in the second quarter of 2020 before stabilising in the subsequent quarters, Kaul pointed out that Chevron Lubricant’s business was affected by the tourism industry coming to a standstill, as well as the import restrictions on motor vehicles and spare parts.

“Lockdowns, low economic activity, and reduced vehicular movement adversely impacted us,” she noted. Nonetheless, she added: “Our company’s robust systems, processes, and disciplined policies significantly increased our resilience.” 

The company was also able to continue sales in the essential services sector, providing for services such as power generation, agriculture, and fisheries, even during the quarantine measures in place. 

Further, Kaul says Chevron Lubricants Lanka has begun adapting to the “new normal”, and will continue with the already-enabled work from home policies for office-based employees, while closely monitoring the health and safety of frontline workers and providing them with personal protective equipment (PPE).