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Leading bunker supplier Chemoil has today reported a net loss attributable to equity holders of US$12.6 million for the third quarter of 2009, representing a $23.1 million, or 220 percent, decrease in net income from a profit of $10.5 million during the corresponding period in 2008.

The profit attributable to equity holders for the first nine months of 2009 decreased $26.3 million, or 75.6 percent, to $8.5 million from $34.8 million in 2008.

Revenue in the third quarter of 2009 dropped 40 percent to $1,635.2 million from $2,721.3 million during the third quarter of 2008. Meanwhile, the gross contribution per metric tonne nosedived 93.2 percent to $0.75 per metric tonne from $11.10 per tonne during the same period in 2008.

Sales volumes between July and September 2009 totaled 3.7 million tonnes, a 7.5 percent decrease from the third quarter of 2008.

"Reflecting Chemoil’s strong presence in the retail shipping market, 3Q2009 retail fuel deliveries were 2.2 million tons, maintaining 3Q2008 levels despite a downturn in the global shipping trade," Chemoil said. "Retail fuel sales have accounted for approximately 60 percent of Chemoil’s volume since the start of 2009, with increases in the retail segments of Asia and Europe during the third quarter of 2009."

Commenting on the results, Chemoil’s Chairman and CEO, Mike Bandy, said: “We had positive performance from our US West Coast and logistics assets, along with many of our associates and joint ventures. However, a number of our port locations were negatively impacted by weak margins. The positive contributions reiterate the benefits Chemoil obtains from supply chain integration as well as the success of our partnership approach towards market growth. However, the current fuel market has not been conducive to margin extraction, especially in Asia, Europe and the Middle East.”

The company’s associates and joint ventures contributed US$2.5 million in earnings in the third quarter of 2009, 30 percent more than during the same period in 2008. Strategic joint ventures remain an integral part of Chemoil’s global growth diversification strategy to tap high potential markets and sustain the quality of its income. Chemoil’s Chief Financial Officer, Jerome Lorenzo, said: “In 3Q2009, it is also important to note that we reduced all of our cash expense items. Our financial position remains strong with shareholders’ equity of US$296 million as of end September 2009. We have healthy liquidity and credit availability for our working capital needs.”

Bandy added: “Demand in the global shipping industry, which in turn drives the marine fuel market, is expected to remain weak over the next quarters. Chemoil’s global presence, strong customer relationships and operations in high growth regions should keep us competitive in these difficult markets.”