Motor oil specialist LIQUI MOLY with a successful first half of the year

LIQUI MOLY looks back on an extremely successful first half of the year: The German oil and additive specialist increased its revenue to 355 million euros, a rise of 23 percent compared to the previous year. “We are emerging from the pandemic stronger because we did not sit back but rolled up our sleeves and worked hard,” says Managing Director Ernst Prost.

(Ulm) While March already recorded the highest monthly revenue in the company’s history, this result was surpassed in June with nearly 66 million euros. July continues strong in the second half with 70 million euros. The 23 percent increase after six months is not due to a pandemic-related weak first half of 2020. On the contrary: Compared to the first half of 2019, the increase is even 38 percent. Not only did revenues rise: From January to July, 53 new employees were hired. Ernst Prost attributes this success to consistent action: “Uncompromising in terms of the quality of our products. Uncompromising in our commitment to providing the very best service for our customers. Uncompromising in investing in our 4Ms: people, markets, machines, and brand.”

Motor oils are increasingly becoming high-tech products

LIQUI MOLY also benefits from the fact that motor oils are increasingly becoming high-tech lubricants that are becoming more demanding to produce. Some oil manufacturers cannot keep up with this technological change. In contrast, LIQUI MOLY continuously invests in research, production, and logistics – even and especially in difficult times. “To reduce investments due to the pandemic would be like a farmer selling his seed instead of planting it in the field,” says Ernst Prost. “For short-term benefits, one saws off the branch one is sitting on.”

Although LIQUI MOLY has navigated the pandemic well, the company faces significant challenges every day, which is also evident in the earnings. While the earnings in the first half of the year are clearly above those of the comparable period in 2020 (8.2 million euros compared to 3.6 million euros), they are noticeably below previous years. “Not only are many raw materials becoming increasingly expensive,” says Ernst Prost. “Some are hardly available anymore.” Due to the pandemic, air traffic has collapsed. Accordingly, the demand for kerosene is lower. However, since refineries cannot simply produce heating oil or something else instead of kerosene from crude oil, they are reducing their overall production.

Ingredients for oil are becoming scarce

Motor oil manufacturers like LIQUI MOLY are also feeling the pinch as the ingredients for their oils become scarce. And once motor oils have been produced, it can take a while for the goods to reach the customer. Because container space on cargo ships is also rare. “The pandemic has disrupted a finely tuned delivery system that has developed over many years,” says Ernst Prost. Nevertheless, July closes with earnings of 2.2 million euros, significantly above the previous months, allowing for an optimistic outlook for the second half of the year. “However, we will certainly have to grapple with the consequences for the entire rest of the year,” says the Managing Director. “We expect a total cost increase of 27 million euros. But we do not complain about the obstacles fate has placed in our way; instead, we roll up our sleeves and clear them away.”

Photo: © Liqui Moly