Thu 11 Nov 2010 10:52

Chemoil posts US$2.6 million Q3 net profit


CEO says company is starting to capture some of the benefits of recovering demand.



SGX mainboard-listed Chemoil, one of the world’s leading suppliers of marine fuel, has today announced a net profit of US$2.6 million for the third quarter of 2010, a year-on-year rise of $15.2 million on the $12.6 million loss recorded during the corresponding period last year.

Year-on-year third quarter sales revenue rose $64.6 million, or 4 percent, to $1699.8 million, whilst revenue for the first nine months of this year was up 36 percent, or $1393.6 million, to $5304.1 million in a comparison with the year-earlier period.

Operating performance continued to improve with gross contribution per metric ton (GCMT) reaching US$5.6 per tonne during the third quarter, up from US$5.0 per metric tonne and US$1.7 per tonne during the previous two quarters. The figure was also $4.8 higher than the $0.8 per tonne recorded during the third quarter of 2009. However the GCMT of $4.1 per tonne posted for the first nine months of this year was 41 percent below the $7.0 per tonne achieved during the same period in 2009.

Third quarter sales volumes were 3.8 million metric tonnes, up 0.1 million tonnes, or 2.7 percent, on last year, whilst volumes for the first nine months of the year rose 0.4 million tonnes, or 2.6 percent, to 11.5 million tonnes.

Sales volumes were positively impacted by the stronger performance of retail fuel sales in the shipping segment, up 4.5 percent to 2.3 million tonnes during the third quarter and up by 9.1 percent to 7.2 million tonnes for the first nine months of 2010.

Chemoil’s Chairman and CEO, Mike Bandy, commented: "It was an improved net profitability performance this third quarter following a difficult start to 2010, however our business continues to be exposed to weak wholesale-retail margin spreads caused by oversupply and weak demand in some of our port locations.

"While Chemoil continues to perform better despite challenging economic conditions, we are starting to capture some of the benefits of recovering demand in specific sectors, namely our core shipping market. Our retail and ex-wharf marine fuel sales in Asia continue to increase in the third quarter. Overall, we are on the right path as our strategies position us to grow profitably and as markets continue to improve."

Chemoil’s Chief Financial Officer, Jerome Lorenzo, said: “The effectiveness of our strategy to improve operational efficiency is becoming more evident in our net profitability and remains an important component of our ongoing process. We also remain focused on measures that have enabled us to lower overheads, with the benefits now becoming more visible in operational areas like storage and barging.”

Bandy concluded: "As wholesale-retail spreads remain challenging, we will continue to drive our business towards improved profitability, higher sales volumes, and reduced operational costs. These operational improvements increase our readiness to maximize growth opportunities as we move towards more favorable market conditions.

“We have seen in the past two months there have been a number of positive developments for Chemoil including the establishment of a new regional operations office in New York; proceeded with the fourth phase of construction of what would be Chemoil’s largest global storage facility in Fujairah through our joint venture with Gulf Petrol Supplies LLC; and the launch of our expanded offering to include risk management products and services to our shipping customers as a fitting complement to our core physical fuel delivery.”


Marius Kairys, CEO of Elenger Sp. z o.o. Elenger enters Polish LNG bunkering market with ferry refuelling operation  

Baltic energy firm completes maiden truck-to-ship LNG delivery in Gdansk.

Samsung Heavy Industries (SHI) virtual reality (VR) training program developed in collaboration with Evergreen. SHI develops VR training solutions for Evergreen's methanol-fuelled ships  

Shipbuilder creates virtual reality program for 16,500 TEU boxship operations.

Illustratic image of Itochu's newbuild ammonia bunkering vessel, scheduled for delivery in September 2027. Itochu orders 5,000 cbm ammonia bunker vessel  

Japanese firm targets Singapore demonstration after October 2027, with Zeta Bunkering lined up to perform deliveries.

Bunkering of the Glovis Selene car carrier. Shell completes first LNG bunkering operation with Hyundai Glovis in Singapore  

Energy major supplies fuel to South Korean logistics firm's dual-fuel vessel.

Orient Overseas Container Line (OOCL) vessel. CPN delivers first B30 marine gasoil to OOCL in Hong Kong  

Chimbusco Pan Nation claims to be first in region to supply all grades of ISCC-EU certified marine biofuel.

The Buffalo 404 barge, owned by Buffalo Marine Service Inc., performing a bunker delivery. TFG Marine installs first ISO-certified mass flow meter on US Gulf bunker barge  

Installation marks expansion of company's digitalisation programme across global fleet.

Sogestran's fuel supply vessel, the Anatife, at the port of Belle-Île-en-Mer. Sogestran's HVO-powered tanker achieves 78% CO2 reduction on French island fuel runs  

Small tanker Anatife saves fuel while supplying Belle-Île and Île d'Yeu.

Crowley 1,400 TEU LNG-powered containership, Tiscapa. Crowley deploys LNG-powered boxship Tiscapa for Caribbean and Central American routes  

Vessel is the third in company's Avance Class fleet to enter service.

The inland LNG bunker vessel LNG London. LNG London completes 1,000 bunkering operations in Rotterdam and Antwerp  

Delivery vessel reaches milestone after five years of operations across ARA hub.

The M.V. COSCO Shipping Yangpu, China's first methanol dual-fuel containership. COSCO vessel completes maiden green methanol bunkering at Yangpu  

China's first methanol dual-fuel containership refuels with green methanol derived from urban waste.


↑  Back to Top