Eastern Lubricants Blenders Ltd has seen its direct expenses exceed overall revenue in the second quarter of the financial year ending in June 2024.

Majority owned by the government, the company sold Tk 13.58 crore of lubricating oils and greases in the October-December period of 2023 against direct expenses of Tk 13.81 crore, according to unaudited financial statements published today.

After incorporating sales in the second quarter, total sales of the company stood at 27.46 crore in the first half of the financial year, with cost of sales of Tk 27.83 crore in the same period.

As such, Eastern Lubricants logged a gross loss during the first six months of the financial year although it managed to post a net profit thanks to a surge in non-operating income during the period.

Still, Eastern Lubricants said its net profit fell 42 percent year-on-year to Tk 42.77 lakh in the October-December period of the financial year 2023-24 compared to a year ago.

Overall, the listed company reported 9 a percent year-on-year decline in earnings, which reached Tk 70.83 lakh, in the July-December period of this fiscal year.

Eastern Lubricants' earnings per share (EPS) fell to Tk 3.30 in three months to the end of December 2023 compared to Tk 6.26 a year ago. Likewise, its profit per share dropped in the first two quarters of the financial year.

In a filing to the DSE, the company said its EPS decreased due to a fall in revenue compared to corresponding period of the previous year.

A senior official of Eastern Lubricants said management had been slow in importing oil amid fluctuation in prices in the international market while the lack of US dollars for import also affected sales.

The official said expenses were higher than total revenue during the period because of operational costs. "We have some plant-related fixed expenses that we have to bear even though we are not operating," he added.

Shares of Eastern Lubricants has fell 1 percent to close at Tk 1,549.20 on the DSE today.