NewMarket Corp, whose subsidiaries include Afton Chemical, saw profit rise in the second quarter as higher prices and a pick-up in sales volume countered still-rising feedstock costs.Net profit of $66.5mn in the three months to end-June rose by 28pc from the same period a year earlier to its highest in more than a year..Profit got a boost from a 23pc rise in the petroleum additives unit’s operating profit to $91.2mn. The fuels and lubricants additives unit accounts for almost all of Newmarket’s sales and profit.The unit’s sales of $721mn in the second quarter rose by 23pc on the back of increased selling prices and a rise in shipment volumes.Its total shipment volumes rose by 2.6pc in the second quarter from the first three months of the year. Higher lubricant additive shipments outweighed a drop in fuel additives supplies. Lube additives shipments rose to all its key global markets except Latin America.Tight additives supply over the past year has been a major factor that has complicated lubricants blenders’ ability to meet demand for certain types of lubricants.NewMarket’s costs rose by 26pc in the second quarter of the year, keeping a squeeze on profit margins.Base oils are a key ingredient in the production of additives..Our efforts to recover margins and control costs are beginning to take hold, but we are still being challenged by the ongoing inflationary environment.NewMarket Chairman and Chief Executive Officer Thomas E Gottwald.NewMarket’s operating profit margin of 12.6pc in the second quarter was steady compared with the same period a year earlier. The margin has typically averaged more than 15pc in recent years..NewMarket’s Q1 profit falls
