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Leading international bunker supplier Chemoil Energy has posted a profit after tax of US$10.4 million for the third quarter of 2008 with an overall net profit of US$34.7 million for the first nine months of the year.

This was realized by revenue growth of 70 percent compared with last year, and a significant increase in gross contribution per metric ton (GCMT) of US$11.10 against $3.10 in the third quarter of 2007.

Commenting on the results, Chemoil said 'Revenue was largely driven by the higher average sales value of marine fuel compared with the third quarter of 2007. In the third quarter, GCMT was boosted by increased sales volumes of bunker deliveries which generally has higher margins and consistent customer base. In addition, despite intense price volatility, the company’s hedging strategy protected the underlying physical inventory.'

Chemoil’s Chairman and CEO, Clyde Michael Bandy, said: 'We focused on bunker deliveries and as such those volumes increased 21 percent for the 3rd quarter.

"Overall, Chemoil’s business model has continued to perform on course and has generated positive results in the past two challenging and volatile quarters: one quarter with a rising oil market and followed by one with a declining oil market. In the first nine months of 2008, profits more than doubled compared with last year. Our performance is a testament to Chemoil’s unwavering focus on extracting high margins and efficiencies from its fuels business by controlling its global supply chain.”

Bandy added: “Amid the current market conditions, our flexibility enables us to adapt our hedging strategies plus allowing us to focus on areas where demand and margins are better. Our diverse sourcing capabilities combined with Chemoil’s investments in controlling the physical aspects of the supply chain, have positioned us to better manage these turbulent market conditions.”

Jerome Lorenzo, Chemoil’s Chief Financial Officer, commented: 'The current global economic credit crunch could create pressure for some suppliers who may struggle to secure financing. Ahead of this, Chemoil has already diversified and established strong relationships with a range of financial institutions, not only to limit exposure to any one creditor, but also to ensure that ample credit facilities are available to continuously serve our customers.'

Speaking about the future, Bandy concluded: 'While shipping may be experiencing a slowdown due to the current economic climate, Chemoil has successfully overcome turbulence in the shipping industry for nearly 30 years and we remain cautiously optimistic about the strength of our market position going forward. We will continue to leverage our global reach and financial strength to remain competitive and ensure growth.'