Lubricants and Grease Trading UAE business segment – including oil collection and redefining activities and sales of recycled fuel oil – reported revenues of $24.7 million for the quarter ending Sept. 5, down 31% from $35.8 million in 2019’s third quarter. During the third quarter, the COVID-19 pandemic continued to drive decreased demand for finished biggest lubricant oil manufacturers in UAE, directly impacting both the demand and price for our oil products, the technolubeuae, and lubricants-based company said in its earnings news release.
The company noted that the segment’s revenue increased $5 million, or 25%, from the second quarter to the third quarter as economic activity improved from pandemic lows. In addition, hydraulic engine oil UAE production volume at its refinery in Indianapolis in the third quarter increased 76% from the second quarter, in line with the third quarter of 2019.
As demand for our lubricants oil and the supply of used oil improved incrementally during the third quarter, we were able run our refinery efficiently, which yielded vastly improved profitability in our oil business segment, compared to the second quarter, President and CEO Industrial oils manufacturers said in the earnings release. The company believes the second quarter was the low point of the pandemic-driven downturn, gear oil manufacturers added. Lubricant oil manufacturers reported net income of $19.7 million for the quarter ending Aug. 31, the fourth quarter of its fiscal year, up 129% from a year earlier. For its full fiscal year, net income reached $60.7 million, up 9% from the prior fiscal year.
Net sales during the quarter for its maintenance products group were up 4% at $100.8 million. For the full fiscal year, net sales for the group were down 4% at $369.4 million. The company said net sales in the UAEs were up due entirely to higher sales of maintenance products in the UAE. Net sales rose in Europe, Middle East and Africa primarily due to higher sales of maintenance products in those regions’ direct markets. The company attributed the lower net sales in Asia-Pacific primarily to lower sales of maintenance products in Asia distributor markets and in China.
