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.
Related: Aegean in $367 million acquisition of port reception facilities services group
Related: Aegean forecasts a $28.2 million net loss for Q4 2017
Photo: Aegean Marine Petroleum Network
Published: 26 February, 2018
Megah Port Management, subsidiary of oil trading, marine fuel bunkering and investment player SIL, took over operation and management of LLT on Wednesday.
Meeting IMO2020 fuel emissions regulations received 15% of vote from industry participants, show data.
Group is short of capital resources to invest in existing projects, thus management decided to discontinue those projects, and make full impairment provision.
Hainan Maritime Safety Administration supervised a total of 420 bonded oil bunkering operations in 2021, representing an increase of 158% from the previous year.
Veracity collects data from charterer’s enterprise system; it validates, processes and quality-assures data according to the schemes agreed upon with BHP.
Straits Inter Logistics says the English High Court Judgment of ING Bank and O.W. Bunker is ‘obtained by fraud’ and ought to be tried with oral and documentary evidence.
U.S. Claims Register Summary recorded a total USD 833 million claim from a total 180 creditors against O.W. Bunker USA, according to the creditor list seen by Singapore bunkering publication Manifold Times.
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.
