Brazil’s Moove sees Q3 profit rise

Brazilian lubricants producer and distributor Moove saw profit rise in the third quarter for the sixth time in a row as it boosted sales volumes and market share in a growing market.

Profit before interest, taxes, depreciation, and amortization (EBITDA) rose to 351.7mn Brazilian real ($72mn) in the three months to end-September.

Profit rose by 43pc from year-earlier levels to a record high.

Profit rose even as sales fell by 3pc in the third quarter from a year earlier.

Lower revenue contrasted with a 9pc rise in Moove’s base oils and lube sales volumes to 172,800mᶟ (153,000t).

Sales volumes got a boost from a 14pc rise in Brazil’s lube consumption in the third quarter.

Moove’s share of the country’s lube consumption rose to 21.8pc of the total in the third quarter, up from a 20.5pc share during the same period last year.

Lower revenue in the third quarter lagged a 9pc fall in costs.

Lower costs coincided with a drop in feedstock prices.

Average US Group II base oil export prices in the third quarter of this year were more than 40pc lower than year-earlier levels, ICIS data showed.

With costs falling faster than sales, Moove’s profit margin of 13.7pc in the third quarter rose from 12.0pc during the previous three months to the highest since 2020.

Moove is part of Cosan Group, with operations in South America, US, and Europe. It produces and distributes products under the Mobil and Comma brands.