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International bunker supplier Chemoil Energy Ltd. is expecting to post a 'strong net profit' for the first quarter of 2011, according to The Business Times.

The news comes a day ahead of Chemoil's Annual General Meeting (AGM), which will be held tomorrow, Friday, 29th April, at the Marina Mandarin Singapore at 3.00 p.m.

According to the Singapore daily, Chemoil said: "The positive operating results achieved in the fourth quarter of last year have not only continued into 2011, but also accelerated in the first quarter of this year."

'Higher cargo and ex-wharf volumes as well as improved margins, have contributed to the profitability in the first quarter, which Chemoil estimates to be in excess of US$20 million after tax," the company added.

For the fourth quarter of 2010, Chemoil announced a profit before tax of US$ 3.7 million. One-time write-offs, including US$ 5.1 million for deferred tax assets of a subsidiary, resulted in a net loss attributable to equity holders of US$1.8 million for the quarter, down US$4.7 million on the US$2.9 million profit achieved during the last quarter of 2009.

Chemoil said the fourth quarter result was the strongest operating performance by the group in 2010 with its gross contribution per metric tonne (GCMT) reaching US$6.70 per tonne, up from US$6.30 per tonne in the fourth quarter of 2009.

However, for the full year to December 2010 gross contribution per tonne declined by 29 percent to US$4.8 per tonne, down from US$6.8 per tonne the previous year. Chemoil generated a net loss attributable to equity holders for the full year 2010 of US$9.5 million - a result which was said to be due mainly to the losses incurred in the first quarter of 2010 and the slow pace of margin recovery throughout the year.

During tomorrow's AGM Clyde Michael Bandy is set to step down as director. Chemoil will also be re-electing the following directors of the company retiring pursuant to Articles 119 and 126 of the Articles of Association:

Mr. Peter Michael Meade (Retiring under Article 119) (Resolution 2)

Mr. Steven Barry John Simpson (Retiring under Article 126) (Resolution 3)

Mr. Thomas Kevin Reilly (Retiring under Article 126) (Resolution 4)

Mr. Hon Kim Weng (Retiring under Article 126) (Resolution 5)

Mr. Takashi Yasuda (Retiring under Article 126) (Resolution 6)

Also during tomorrow's AGM Chemoil will be appointing Deloitte Touche Tohmatsu as auditors of the company in place of the retiring auditors PricewaterhouseCoopers, to hold office until the conclusion of the next AGM of the company.