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Aegean reports ‘significant pressures’ in Q4 2017 results

Anticipates bunker sales volume expansion at ARA, Germany, Savannah and US East Coast in 2018.

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New York-listed Aegean Marine Petroleum Network (AMPN) posted losses in its financial and operating results for the fourth quarter (Q4) ended December 31, 2017.

The company recorded net loss of $28.6 million in Q4 2017, compared to net profit of $16.0 million in Q4 2016, according to financial statements.

Revenue was $1.36 billion in Q4 2017, higher than revenue of $1.19 billion in the similar quarter of 2016.

According to AMPN, its Q4 2017 loss of $28.6 million includes roughly $15.3 million of non-recurring expense items including $11.0 million of non-cash charges.

In addition, the company experienced approximately $12 million of hedging losses during Q4 2017 due to its first in, first out (FIFO) reporting method of inventory cost; the loss was recovered in January 2018 when inventory was sold at market prices, and the hedges were closed.

In Q4 2017, AMPN ceased operations as a physical supplier in Singapore where the company delivered its last physical cargo in Singapore in January of 2018.

In addition, AMPN downsized operations in Fujairah and recalibrated its U.S. West Coast footprint while expanding in Germany, where the company established a presence in Kiel.

Moving on, AMPN says it will seek new opportunities to replace volumes ceded by the group in both Singapore and Fujairah by seeking volume growth elsewhere in the network, where margins are more sustainable.

Key elements of this strategy are the anticipated expansion in volumes in the Amsterdam-Rotterdam-Antwerp region, Germany and Savannah on the East Coast of the US.

The company recorded bunker sales volume of 3.51 million metric tonnes (mt) in Q4 2017, down from sales of 3.95 million mt in Q4 2016.

“Our decision to cease operations in Singapore and downsize operations in Fujairah in order to focus on higher return areas contributed to a 15.2% decrease in sales volume when compared to the prior quarter,’ said Spyros Gianniotis, Chief Financial Officer at AMPN.

He expects future results of AMPN to be positive due to the recent acquisition of HEC.

“While our recent results show the significant pressures on the markets in which we operate, we remain confident that we are taking the right steps to position Aegean for long-term growth.

The acquisition of HEC diversifies the company’s revenue streams, opens up growth opportunities in the environmental services market and creates potential for synergies within our existing network.

“Once completed, we expect the addition of HEC to be immediately accretive to our operating and financial results and the combined company to accelerate growth moving forward.”

Related: HEC acquisition ‘driven by intense competition’
Related: Aegean forecasts a $28.2 million net loss for Q4 2017
Related: Aegean in $367 million acquisition of port reception facilities services group
Related: Aegean exits Singapore accredited bunker supplier list
Related: Aegean to start Kiel Canal bunker ops in 2018

Photo credit: Aegean Marine Petroleum Network
Published: 8 March, 2018
 

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Decarbonisation

SMW 2024: Maritime industry on track to adopt mid-term decarbonisation measures, says IMO chief

Safety, inclusion and transparency will be key areas for Mr Arsenio Dominguez’s tenure as Secretary-General of the International Maritime Organization.

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SMW 2024: Maritime industry on track to adopt mid-term decarbonisation measures, says IMO chief

The article ‘Maritime industry on track to adopt mid-term decarbonisation measures: IMO chief’ was first published on Issue 1 of the Singapore Maritime Week 2024 Show Dallies; it has been reproduced in its entirety on Singapore bunkering publication Manifold Times with permission from The Nutgraf and the Maritime and Port Authority of Singapore:

Toh Wen Li
[email protected]

The maritime industry is “on track” to roll out decarbonisation measures by 2025 as set out by the International Maritime Organization, said its new chief Arsenio Dominguez.

“We are on track to adopt mid-term measures by late 2025 to cut greenhouse gas (GHG) emissions, to reach net zero targets,” said Mr Dominguez, who took over as IMO Secretary-General in January.

In 2023, the IMO released a revised GHG strategy to reach net-zero emissions from shipping by or around 2050 – far more ambitious than its 2018 initial GHG strategy, which aimed only to cut emissions by at least 50 per cent compared to 2008.

“These will help us progress towards achieving netzero GHG emissions by or around 2050, with indicative checkpoints to reach by 2030 (cut GHG emissions by at least 20 per cent, striving for 30 per cent), and 2040 (cut GHG emissions by at least 70 per cent, striving for 80 per cent).”

Mr Dominguez, who will be speaking on the opening day of the 18th edition of SMW, also emphasised the need to keep seafarers safe against the backdrop of heightened geopolitical tensions. He said the attacks on ships in the Red Sea have far-reaching economic implications.

“Prolonged disruptions in container shipping could lead to delayed deliveries, high costs, and inflation. Energy security and food security could potentially be affected due to increased prices,” he said.

“These attacks pose serious threats to global maritime security, as well as the security and maritime trade for the coastal states in the region,” he said, calling out the Red Sea attacks as “categorically unacceptable”. But he remains confident that the industry will continue to stay resilient. “I trust that shipping organisations and Member States alike will come together in the relevant IMO fora to seek collaboration and look for solutions together.”

Mr Dominguez also pledged to create a more inclusive IMO, one that is more gender-balanced in an industry that has long been dominated by men.

“I have appointed a gender balanced senior management team and initiated a policy of refraining from participating in panels or events unless gender representation is respected. I encourage the maritime community to follow this example,” he said.

He added that the IMO will also strive to fulfil its mandate as the world’s regulator for international shipping; support IMO’s 176 Member States, particularly Small Island Developing States and Least Developed Countries; raise public awareness of IMO’s impact; and adopt a “people-centred approach”.

“My vision is for IMO to flourish as a transparent, inclusive, and diverse institution,” he said. 

Singapore can ‘shine a light on the way forward’

Key maritime hubs like Singapore can play a key role as the industry pushes ahead in its quest to decarbonise, said International Maritime Organization’s (IMO) Secretary-General, Mr Arsenio Dominguez.

“Singapore is (in) a great position to participate in trials and pilots to show what works, including routebased actions – and share results of any trials back to IMO,” he said.

The green transition poses a slew of fresh considerations for the maritime sector. A major bunkering hub such as Singapore will need to look at making changes to infrastructure to deliver new fuels.

Other considerations for the industry include safety, pricing, lifecycle emissions, supply chain constraints, barriers to adoption and more, added Mr Dominguez. Seafarers, too, will need to be trained in how to operate new technology safely.

“We need ‘early movers’ in the industry as well as forward-looking policy makers to take the necessary risks and secure the right investments that will stimulate long-term solutions for the sector,” he said.

Singapore Maritime Week is a chance for key stakeholders to “have the conversations and discussions that can formulate ideas and bring new solutions”, Mr Dominguez said.

Now, more than ever, collaboration will be crucial. “The experience of critical maritime hubs like Singapore can help shine a light on the way forward for many issues. Here the IMO can play a role in providing opportunities for Singapore and other maritime hubs to share their expertise with all Member States. Shipping is global – no single country can go it alone.” 

Singapore Maritime Week 2024 was organised by Maritime and Port Authority of Singapore from 15 to 19 April. 

 

Photo credit: International Maritime Organization
Article credit: The Nutgraf/ Maritime and Port Authority of Singapore
Published: 23 April, 2024

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Winding up

Singapore: Liquidator issues notice of dividend for Paliy Marine Engineering

Liquidator of Paliy Marine Engineering, which is undergoing voluntary liquidation, issued a notice on the first and final dividend.

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A notice of dividend for Paliy Marine Engineering Pte Ltd, which is undergoing voluntary liquidation, was published on the Government Gazette on Friday (19 April).

The following is the details of the notice:

Name of Company : Paliy Marine Engineering Pte. Ltd. (In Creditors’ Voluntary Liquidation) 

Unique Entity No. / Registration No. : 199608223D 

Address of Former Registered Office : 149 Rochor Road #03-28 Singapore 188426 

Amount per centum : 100 per centum of all admitted preferential claims 12.21 per centum of all admitted ordinary claims 

First and Final or otherwise : First and Final 

Name of Liquidator : Abuthahir Abdul Gafoor 

Address of Liquidator : c/o AAG Corporate Advisory Pte. Ltd. 144 Robinson Road #14-02 Robinson Square Singapore 068908

According to SGP Business website, the firm’s principal activity is building and repairing of ships, tankers and other ocean-going vessels. 

Related: Singapore: Paliy Marine Engineering liquidator issues intended dividend notice

 

Photo credit: steve pb from Pixabay
Published: 23 April 2024

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MoU

IBIA and BIMCO to collaborate on bunker fuel and maritime challenges

Both will collaborate in areas including research initiatives, studies, and projects relevant to bunker or marine energy industry and maritime sector as well as training and education.

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IBIA and BIMCO to collaborate on bunker fuel and maritime challenges

The International Bunker Industry Association (IBIA) and BIMCO on Monday (22 April) said they have signed a Memorandum of Understanding (MoU) to collaborate on some of the monumental challenges and opportunities within the areas of bunker, marine energy and maritime sectors and help facilitate shipping’s decarbonisation efforts.

The parties have agreed to leverage their respective expertise and resources to develop innovative solutions and initiatives to facilitate the transition towards cleaner fuels and efficient and sustainable shipping practices. The partnership MOU will focus on addressing the following key areas:

Research and Development: Collaborate on research initiatives, studies, and projects relevant to the bunker/marine energy industry and maritime sector.

Information Sharing: Share relevant information, publications, and data that may be beneficial to the members of both organisations.

Training and Education: Explore opportunities for joint training programs, seminars, and educational initiatives to enhance the knowledge and skills of professionals in the maritime and bunker/marine energy industry.

Influence: Work together on efforts to address common issues and challenges faced by the industry.

Alexander Prokopakis, Executive Director of IBIA, said: “This partnership between IBIA and BIMCO marks an important step towards addressing the pressing challenge of decarbonisation in the shipping industry. The collaboration underscores the industry’s collective commitment to navigating towards a greener future for maritime operations.”

David Loosley, BIMCO Secretary General & CEO, said: “As we work towards the checkpoints and targets of the updated GHG strategy of the IMO, working across all sectors that influence and support decarbonisation of shipping will be key. Our ships will be relying on many different fuel solutions in the process and working toward the safety and availability of those is crucial.” 

IBIA and BIMCO are committed to driving progress towards a more sustainable and environmentally responsible future for the global shipping industry.

 

Photo credit: IBIA and BIMCO
Published: 23 April 2024

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