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
David John Kidd amassed losses of over SGD 1 million to Lukoil Asia Pacific Pte Ltd through multiple irregular trades with Transocean Oil over a four-month period in 2016.
Initial goal is to procure bunker fuel for Cargill and Maersk Tankers’ combined fleet, while aiming to attract additional customers in the coming months.
‘OTPL has a strong group of employees who have the requisite expertise and experience in ship chartering and management, which has commercial value and should be kept intact.’
Lim Teck Cheng, the Executive Chairman of Hong Lam Marine, receives award from Dr Lam Pin Min, Senior Minister of State for Health and Transport.
Marine segment saw ‘strongest results’ in last five years due to seasonality and tight bunker market in Singapore.
M/V Autosky will test Bio-Fuel Oil on its normal route, reducing more than 6,500 metric tonnes of CO2 emissions on a well-to-wake basis.
Session will provide insights on bunker quality issues from a bunker supplier, shipping company and surveyor, as well as providing insight and guidance on legal and dispute resolution issues.
Gealubes Consulting & Trading, the authorised marine business distributor of PANOLIN EALs at Singapore port, shares a two-part education series on Environmentally Acceptable Lubricants on Manifold Times.
Danny Lee Chee Keong was sentenced to nine months’ imprisonment over the theft of MFO from the Consort Bunkers owned and operated bunker tanker at the sea off Eastern Petroleum ‘B’ anchorage.
‘Metcore’s MFM+ Program exemplifies serious oil suppliers and buyers who advocate fair trading using a recognised and widely-accepted technology,’ highlights Darrick Pang, Managing Director of Metcore.
‘The victim is Consort Bunkers Pte Ltd, the owner of the Pearl Melody,’ states the joint statement of facts (SOF) document obtained by Singapore bunkering publication Manifold Times.
Between November 2016 and October 2017, Mr Tan falsified at least 20 invoices and submitted these invoices to UOB and OCBC, according to court documents obtained by bunkering publication Manifold Times.
