Image credit: Monjasa

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Danish bunker group Monjasa has confirmed in its annual report for 2017, published on Thursday, that it managed to swing into profit last year with a net income of $7 million, compared to the $26 million loss posted in 2016.

Earnings before interest and taxes (EBIT) was also $7m, representing a $24m improvement on the $17m loss seen the previous year.

Revenue generated during the 12-month period grew by $0.2bn, or 16.7 percent, to $1.4bn. This was said to be primarily due to a 19 percent increase in oil prices.

The jump in revenue was achieved despite a dip in marine fuel sales volume of 0.3m tonnes, or 7.9 percent, to 3.5m tonnes.

Monjasa's consolidated equity grew in 2017 by $10m, or 8.8 percent, to $124m, while the solvency ratio of 36.6 percent was a slight improvement on the prior-year's figure of 36.2 percent.

Commenting on the results, Monjasa said: "We experienced improved profitability in our operations and we continued making progress in optimising operational expenditures. Together, this led to a financial turnaround compared to an unsatisfactory 2016."

Group CEO Anders Ostergaard remarked: "Like most of our peers, we can conclude that 2017 was yet another challenging year in global shipping. That is why I am particularly satisfied with our Group performance."

Quality and transparency

On the issue of quality, Ostergaard said: "We have spent the year moving closer to our business and offering improved quality to customers taking bunkers in markets where Monjasa is already an established supplier."

The CEO added: "At Monjasa, we still have some road ahead of us, but we have come a very long way on documenting the quality of our bunker operations across sourcing, shipping and supply. Together with our improved financial performance, this is Monjasa on the right course."

Ostergaard also posited that there should be increased transparency in the bunker industry. "Looking ahead, I believe that everyone in our industry needs to demonstrate extended transparency in their operations. Not least considering IMO's upcoming global regulations on high sulphur fuel in 2020," he said.

Ostergaard's comments echo those made last month by COO Svend Stenberg Molholt - in a series of interview articles published by Bunker Index - who reflected on the increased scrutiny from clients, banks and regulators; and outlined the company's global approach to compliance; and also explained how the use of questionnaires in its procedures now forms a key part of how it works with suppliers and customers as it continues to look at ways of improving quality and compliance.