Shell, the world’s largest lubricants supplier, saw profit from its lubricants business fall in the third quarter to the lowest in more than two years in the face of slowing sales and high feedstock costs.The unit’s adjusted earnings came to $103mn in the three months to end-September. Profit was down from $225mn in the second quarter of the year and down 58pc from year-earlier levels.The lower profit coincided with a fall in Shell’s lubricants sales volume to 80,000 b/d (1.05mn t) in the third quarter of the year. The volume dipped from 86,000 b/d in the second quarter to the lowest in more than two years..The lower sales volume contrasted with a 15pc year-on-year rise in the unit’s revenue to the highest in more than two years.Lubricant blenders globally have had to manage over the past two years the challenge of rising feedstock and other costs, supply bottlenecks and logistical disruptions.They also now faced the challenge of a slowdown in economic growth that has already cut lube demand in markets like Europe and China.Shell, which includes lubricants amongst its low-carbon products and services, was still considering a plan to produce Group II base oils at its Singapore refinery. The status of the project remained a pre-final investment decision option, its third-quarter earnings report showed.Shell’s current base oils production capacity in Singapore consists of Group I base oils.Shell’s lubricants business accounted for 1.1pc of the company’s total profit in the third quarter. The share was down from a 2pc share during the previous three months and a 6pc share during the same period a year earlier..Europe’s July lube demand falls
