Fuchs SE reported a 10% increase in net profit on 7% greater sales revenue for the second quarter, citing continued impacts from price increases instituted during 2022.
Meanwhile Luberef reported a 4% increase in net income for the quarter, boosted by increased revenue from base oil sales.
Fuchs
Mannheim, Germany-headquartered Fuchs reported profit after tax of €68 million (U.S. $74.8 million) for the quarter ending June 30, compared to €62 million.
Sales revenues for the first quarter reached €886 million, up from €832 million.
In Europe, Middle East and Africa, sales revenues increased 2% to €515 million. Sales revenue in Asia-Pacific rose 10% to €239 million. In North and South America, sales revenues went up 8% to €171 million.
In its earnings presentation on results for the first half of this year, the company highlighted strong growth in sales in Europe, Middle East and Africa because of price adjustments implemented in the course of 2022. Fuchs noted double-digit growth rates in almost all of its companies, mainly from Great Britain, Poland and Ukraine. “Mainly the EMEA region, with contributions from a variety of countries, showed significant growth compared to the previous year,” Chairman Stefan Fuchs said in the company’s earnings presentation, highlighting positive development in the Nordic Region.
In Asia-Pacific, sales growth was also mainly price-driven, with Australia and South-East Asia showing strong increases, thanks to positive business and price development. Business in China, while still affected by a moderate economic recovery was also primarily price-driven, the company said, noting it was significantly above results in the previous year.
In North and South America, price increases also drove growth in sales, the company noted.
Luberef
Luberef, formally known as Saudi Aramco Base Oil Co. – reported net income of 454.9 million riyals (U.S. $121.3 million) for the second quarter, a 4% increase. The company attributed the increase in part to an increase in revenue from base oil sales despite a reduction in base oil crack margins. This was in addition to the impacts of a decrease in selling and distribution expenses, the company said, as well as in general and administrative expenses.
Operating profit for the quarter declined 11% to 480.7 million riyals. Sales revenue fell 22% to 2.6 billion riyals in the second quarter, compared to 3.3 billion riyals.