Eastern Lubricants posts Q2 profit despite operating loss

Eastern Lubricants Blenders' direct expenses (cost of production) exceeded its total revenue in the second quarter of FY26, mainly due to lower sales and higher production costs.
The state-run entity's revenue stood at around Tk 88 million in the October-December quarter of FY26, compared to direct expenses of Tk 91 million during the period under review, according to a stock exchange filing on Tuesday.
Direct expenses include costs related to raw materials, labour and other inputs associated with the production process.
Eastern Lubricants' sales plunged 68 per cent year-on-year in the quarter as demand shrank, resulting in an operating loss of Tk 5.50 million in the quarter ended December last year.
Despite the operating loss, the company managed to post a net profit for the quarter, riding on non-operating income.
Its non-operating income stood at Tk 13.6 million in the second quarter of FY26, down from Tk 19.6 million in the same quarter of the previous year. The lower non-operating income in the quarter ended December last year dragged Eastern Lubricants' net profit down by 63 per cent year-on-year to Tk 6.12 million.
Eastern Lubricants is a subsidiary of the Bangladesh Petroleum Corporation. Its core business is importing base oil and supplying it to other state-owned companies-Padma Oil, Meghna Oil and Jamuna Oil.
An official of the company, requesting anonymity, said the management had been slow in importing oil amid price fluctuations in the international market.
Expenses were higher than revenue in the second quarter of FY26 due to operational costs. "We have some plant-related fixed costs that we have to bear even though we are not operating," he added.
However, the company's half-yearly profit rose 24 per cent year-on-year to Tk 31 million in July-December 2025, supported by higher sales. Half-yearly sales increased 7 per cent year-on-year, driven mainly by strong sales in the first quarter of FY26.

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