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"In order to sustain the long term growth of the business, the Board has made a decision to relocate the plant at the expiry of the lease of the land," chairman Farrukh Saeed told shareholders in the annual report.
"The Board is currently evaluating the cost and benefits of several properties identified for this purpose."
The lease runs out in July 2014. Chevron Lubricants originally bought the plant, and a brand - 'Lanka' - from state run Ceylon Petroleum Corporation.
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The land is leased from Ceylon Petroleum Storage Terminals Ltd, a common-user facility.
In the year to December 2011, the firm had revenues of 11.0 billion rupees, up from 9.4 billion rupee a year earlier. It posted profits of 2.0 billion rupees, up from 1.5 billion rupees a year earlier.
Managing director Kishu Gomez said the firm was increasing exports to the region.
"Our exports to Bangladesh and the Maldives continued to do well, as we increased our export volume by 30 percent and further strengthened our tie