New York-listed bunkering firm Aegean Marine Petroleum Network has forecast a $28.2 million net loss for its fourth quarter of 2017 (Q4 2017) results.
It noted Q4 2017 results being impacted by $14.5 million in non-recurring charges; $4.5 million was spent on legal, tax and advisory fees while $10.0 million was related to tax and accounting changes, currency translation, non-cash severance, write-offs from the company’s closure in Singapore and the loss on the sale of a vessel.
A further $12 million of losses was recorded as a result of the Aegean’s first in, first out (FIFO) reporting method of inventory cost that created a “mismatch” when compared to the mark-to-market of the company’s respective hedges at December 31, 2017.
However, the above $12 million loss was recovered in January 2018 when inventory was sold at market prices with hedges being closed at market.
According to Aegean, the company has taken steps to cut costs and offset the competitive operating environment in 2017.
Among measures were its exit of the physical supply business in Singapore; recalibration of West Coast U.S. storage footprint; reduction of volumes and increased focus on more profitable businesses in the Fujairah market; and the introduction of a dynamic chartering program for its vessel fleet.
“Despite what has continued to be a challenging period in our core business, I am proud of the definitive action our management team has taken to offset market weakness,” says Jonathan McIlroy, President of Aegean.
“Our expected fourth quarter headline results do not tell the full story of the cost cutting and bold steps we have taken—such as ceasing our physical supply business in Singapore during the quarter.
“While business was slower to come back in the wake of third quarter’s severe hurricane season and refinery outages in Mexico, our core business showed signs of modest improvement from third quarter’s results.
“2018 is likely to be another tough year for our core business, but Aegean is amidst a transformation that we firmly believe will unlock significant value for all shareholders over time.”
Photo credit: Aegean Marine Petroleum Network
Publication date: 22 February, 2018
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Debunkering should only be required when it has been established, beyond reasonable doubt, that a ship is carrying fuel oil that exceeds the 0.50% sulphur limit.
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Glencore purchased fuel through Straits Pinnacle which contracted supply from Unicious Energy. Contaminated HSFO was loaded at Khor Fakkan port and shipped to a FSU in Tanjong Pelepas, Malaysia to be further blended.
Individuals were employees of surveying companies engaged by Shell to inspect the volume of oil loaded onto the vessels which Shell supplied oil to; they allegedly accepted bribes totalling at least USD 213,000.
MPA preliminary investigations revealed that the affected marine fuel was supplied by Glencore Singapore Pte Ltd who later sold part of the same cargo to PetroChina International (Singapore) Pte Ltd.
‘MPA had immediately contacted the relevant bunker suppliers to take necessary steps to ensure that the relevant batch of fuel was no longer supplied. Further investigations are currently on-going,’ it informs.
Juandi bin Pungot spent SGD 3.4 million of his criminal benefits on amongst others, cars, luxury watches, and properties, according to documents seen by Singapore bunkering publication Manifold Times.
