Lubricant maker United Global has posted earnings of US$1.7 million for the half year financial period ended 30 June 2020, down 63.5% y-o-y from the year earlier period.

The drop was because the company recognised just 60% of its share of earnings from an entity called United Oil Company which was sold to a Spanish company Repsol
Downstream Internacional S.A last November.

Revenue in the same period was down 46.3% y-o-y to $34 million. Gross profit margin over the same period increased by 8.7 percentage points to 24.6%, as the company benefited from lower crude and base oil prices which it uses as raw materials. 

“We are gratified that the impact of the pandemic has not severely affected our core lubricants business, as many of our customers in various countries around the world were operating essential services,” said Jacky Tan, CEO of United Global.

“In the longer term, we remain committed to identifying growth opportunities in our key markets of Singapore, Malaysia, Indonesia and Vietnam,” he added.

United Global shares closed Aug 11 unchanged at 41 cents.