Specialty chemicals producer Lubrizol saw profit rebound in 2022 mostly because of fire-related insurance recoveries.

These countered the negative impact of rising raw material costs, lower sales volumes, the strong US dollar versus other currencies, and unplanned maintenance.

Lubrizol’s total sales of $6.7bn in 2022 rose by 3pc from the previous year, Berkshire Hathaway said in a full-year earnings report. The revenue was the highest since 2018.

Lubrizol is a unit of Berkshire Hathaway.

Sales rose because of higher selling prices.

Lubrizol’s selling prices rose in response to higher costs for raw materials like base oils.

Europe’s average Group I light-grade base oils prices in 2022 were around 20pc higher than the previous year.

Other costs, such as utilities, packaging and freight also rose.

Unplanned plant maintenance and supply constraints for certain raw materials impacted Lubrizol’s production capabilities and sales volumes.

The lower sales volumes added to the unusually tight availability of lubricant additives globally in 2022.

The tight availability triggered higher prices that compounded lube blenders’ rising costs. The lack of supply delayed production of some lubricants until blenders were able to secure the required volumes.

Lubrizol expected that it would be able to raise production and sales volumes this year following the easing of the supply-chain and maintenance issues that it faced in 2022.

Lubrizol’s pretax profit rose by 49pc in 2022, Berkshire Hathaway said, without disclosing the amount.

Profit got a boost from insurance recoveries following fires in France in 2019 and in the US in 2021.

Profit otherwise faced pressure from rising raw material costs and lower sales volumes.