Bunker Holding on Monday (29 June) posted its “best-ever” annual result due to a diligent and long planned strategy.
The international bunkering firm announced earnings before tax doubling from USD 77.3 million to USD 155.2 million, while revenue grew to USD 10.9 billion.
It ended the year with an equity base of USD 357 million – the highest in the Group’s history. Net borrowings were significantly below its net working capital; 92% of its balance sheet was reported as current assets.
“All of us at Bunker Holding are proud to be part of this success. It is the result of relentless strategical execution, and by abilities that we have built up over the past many years,” says CEO Keld R. Demant.
“Our success has been enabled by our long-term commitment to recruit and retain the most capable and committed employees. At the same time, rock-solid financial foundations have enabled us to maintain both strong creditworthiness and offer attractive lines of credit.”
The 2019/20 result reflects increased margins per tonne sold of marine fuel.
“Bunker Holding creates value for clients every day by working with them as a trusted partner and help them manage an ever more complicated and critical bunkering process,” says Demant.
“We make bunkering seem simple by providing our clients with expert advice on crucial issues such as bunkering strategy, financing and availability, and with local intelligence in ports all over the world.”
Also contributing to the record-breaking year was a strong result from Bunker One, Bunker Holding’s physical operations, which has 22 supply locations worldwide.
In its second full year of operations, Bunker One entered West Africa, strengthened its portfolio in Scandinavia, and became the market leader in the US Gulf Offshore and Caribbean.
The circumstances that led to this year’s record-setting result will be followed by yet another extraordinary business environment caused by the COVID-19 pandemic, according to Bunker Holding.
The long-term trajectory and effects of the volatile oil prices and the pandemic remain unpredictable, and the crisis will most likely affect the entire industry.
“But we are confident that the strengths that carried us through last year will also help us through the coming turbulent months,” notes Demant.
“We enjoy superior financial strength as well as great stability afforded by our family ownership, and we have highly skilled employees and market expertise. All these advantages mean that we can and will keep pursuing sustainable growth.”
Photo credit: Bunker Holding
Published: 29 June, 2020
Current low prices for road and aviation fuels in September could mean another increase of flashpoint off-spec cases for MGO when players start introducing the products back into the bunker stream.
Some bunker suppliers at various ports have even achieved their sales target for the year; the trend doesn't seem to be slowing down and suppliers are expecting a boom during end of September.
The company has entered a memorandum of agreement with Millenium Satu Ltd to acquire the 7,550 dwt oil tanker to increase service flexibility; vessel will be paid over an installment period of 36 months.
Deloitte & Touche JMs believe IPP has a viable claim against Dr Goh Jin Hian for breaches of his director’s duties to act with skill, care and diligence which he owned to IPP, states court document.
An earlier MPA notice outlined precautionary measures for personnel to observe when conducting marine refuelling operations at port in order to minimise the risk of contracting Covid-19.
Mok’s offence affected public confidence in the use of the MFM system onboard Singapore bunker tankers, and caused an embarrassment to the MPA, said Deputy Public Prosecutors.