The move to acquire maritime and offshore waste treatment firm H.E.C. Europe Limited (HEC) has been “driven by intense competition”, says the President of New York-listed bunkering firm Aegean Marine Petroleum Network (ANW).
“The strategic decision to buy HEC and align Aegean into this new environmental sector is not going to diminish our focus on writing the core business and optimsing the core business,” Jonathan Mcilroy said in his latest earnings conference call.
“But one thing with this is that, as we've said, the bunker market is very mature, it's overpopulated, it's ultra-competitive, and we're looking at a two-year window prior to 2020 where we think that these factors are going to remain prevalent in the market.
“And we don't want to be playing defense for the next two years in anticipation of 2020.”
The strategy behind ANW’s acquisition of HEC lies in the potential synergy of both firms. HEC is responsible for performing treatment on oily waste where it sells the recovered oil to clients in the open market.
The company will be able to leverage on Aegean’s client base to provide waste disposal services, with Aegean’s existing relationships providing additional recycled oil sales opportunities to the former.
The development allows HEC to redeploy or repurpose underutilised Aegean ships, lowering potential capex requirements for ANW, and the consolidation of offices worldwide could reduce corporate expenses for both entities.
HEC is also able to leverage on Aegean’s existing team and port relationships to expedite market expansion.
Overall, the development is supposed to help diversify ANW’s current business model and reduce its dependency on bunker-market related sales.
ANW has forecast a $28.2 million net loss for its fourth quarter of 2017 (Q4 2017) results.
Photo: Aegean Marine Petroleum Network
Published: 26 February, 2018
Digitalisation makes it easier for shipowners to conform to growing external regulations such as new sulphur regulations and ‘no scrubber’ zones; operators can identify better bunkering options to reduce costs.
‘We’ll start the application [to MPA] before the end of 2022 and hopefully to receive approval within six months or sooner,’ L. Y. Hwang, Director / General Manager of Oval Asia Pacific Pte Ltd, tells Manifold Times.
Rob Ashton, Market Manager of Infineum, explains how Infineum B402 is a relatively easy way for a ship operator to positively influence a vessel’s CII rating while improving its bunker fuel consumption performance.
Eventual adoption of Digital Bunker Document Standard speeds up interoperability between stakeholders from both public and private sectors, learns Singapore bunkering publication Manifold Times.
ISO delegates represented seven countries and were in Singapore to attend a three-day meeting of ISO WG13 to develop two new ISO bunkering standards, learns Singapore bunkering publication Manifold Times.
Cai Zhi Zhong received a total of about USD 1.3m to USD 1.6m, of which he saved a portion and spent the rest, including on property, cars and watches, according to court documents obtained by Manifold Times.