Thu 16 Apr 2020, 12:42 GMT

Monjasa beats expectations with $26.5m profit


Higher sales volume offset by fall in average crude price.


Anders Østergaard, Monjasa Group CEO.
Image credit: Monjasa
Bunker supplier and trader Monjasa has confirmed that it achieved a net profit of $26.5m in 2019, which the firm says was 'above expectations'. The result represents an increase of $21.6m on the previous year's figure of $4.9m.

In the Danish bunker group's latest annual report, earnings before interest and taxes (EBIT) rose year-on-year by $27.8m, from $8.3m to $36.1m.

Revenue of $2.191bn was slightly up on the $2.073bn figure posted in 2018, whilst total supply volume jumped 400,000 tonnes, or 9.8 percent, to 4.5m tonnes.

Key Performance Indicators: 2015-19

Year Net Profit ($m) Revenue ($m) Sales Volume (MMT)
2015 24.0 1,602 4.2
2016 -26.0 1,159 3.9
2017 6.8 1,407 3.5
2018 4.9 2,073 4.1
2019 26.5 2,191 4.5

Sales volume increase

The Americas region posted Monjasa's most significant sales volume increase of 35 percent, reaching 1.15m tonnes, or 25.6 percent of overall sales.

The group's top-selling bunker port last year was Balboa in Panama. The top 10 supply locations included four ports in Africa; two in both Panama and the UAE; and one in Singapore and the United Kingdom, respectively.

Top-selling bunker ports, 2019

Ranking Port Country
1 Balboa Panama
2 Lomé Togo
3 Singapore Singapore
4 Cristobal Panama
5 Fujairah UAE
6 Jebel Ali UAE
7 Port Gentil Gabon
8 Portland UK
9 Pointe-Noire Republic of Congo
10 Takoradi Ghana

The effect of crude oil prices on revenue

Monjasa reflected in its annual report that revenue in 2016 and 2017 had been negatively affected by lower average crude prices compared to 2015.

In 2019, meanwhile, the group's higher sales volume had been offset by an annual drop in the average price of Brent crude, from $71 to $64 per barrel.

Evaluation of performance and outlook

Discussing the results, Group CEO, Anders Østergaard, remarked: "We are proud to present this strong set of results for 2019. A special year leading up to one of the most defining moments in global shipping since the shift away from coal a century ago."

Monjasa noted that during the transition to lower-sulphur fuel, the company's objective had been to enable the smoothest possible transition for its customers. This was done by acquiring further ownership of the logistics surrounding its marine fuel operations and cultivating IMO 2020 technical knowledge across supply chain relations.

Østergaard observed: "For Monjasa, this much-anticipated shift to the more environmentally friendly marine fuels meant that our role of matching supply and demand with logistical solutions, became a critical factor across the shipping industry.

"Through extensive preparations together with our business partners, including suppliers, our oil terminals and fleet operations, Monjasa ended up strongly positioned to respond to a highly volatile market. The result was an increasing demand for our products and services, and a successful transition for our customers."

In terms of the group's financial position, Monjasa pointed out that it added four dedicated trade finance banks to its existing banking pool in 2019 and increased its overall credit facilities by an additional $160m.

Consolidated group equity increased to $135m and the solvency ratio was 29 percent.

Commenting on the outlook, Monjasa said: "Given the unfolding global Covid-19 health situation, 2020 will be another demanding year for most global industries, including the maritime. However, confirming a solid position among the world’s top-10 marine fuel suppliers in 2019, Monjasa remains confident of representing a safe port for new and loyal customers throughout 2020 as well."


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