Specialties chemicals producer Lubrizol Corp, a unit of Berkshire Hathaway, saw its sales rise in 2021 on the back of higher selling prices and volumes.

But its pretax profit slumped amid losses related to a fire last year at a subsidiary unit, combined with impairment charges for an underperforming unit.

Sales of $6.5bn in 2021 rose by 8.6pc from a year earlier amid higher average selling prices. These prices rose on the back of significant increases in materials and other manufacturing costs.

Global base oil prices surged in 2021, especially in the first half of the year, in response to unusually tight supply and a strong rebound in demand. The supply tightness included lubricant additives.

Lubrizol’s sales got a further boost from slightly higher sales volumes.

Its pretax profit fell by more than 50pc in 2021 from a year earlier. The profit included losses related to a fire last June at Chemtool’s grease facility in Illinois.