In an exclusive interview with Singapore-based bunkering publication Manifold Times, marine fuel logistics firm Banle Group recently shared insights on its recent 2024 annual financial results of CBL International Limited, its listing vehicle.
Dr Teck Lim Chia, Chairman and Chief Executive Officer, provides details on its bunkering strategies, specifically on biofuels after the company reported a significant highlight of its results on the company’s push towards sustainability, with biofuel sales surging by 628.8% and volume by 603.0%:
MT: Could you elaborate on the company’s expansion of bunker trading network and customer diversification?
The company has achieved huge strides in expanding its global port coverage to over 60 ports across fourteen countries and regions in four continents from 36 ports since its Nasdaq listing in March 2023. We now offer bunkering services to 13 of the top 15 ports in the world. Also in 2024, we expanded into Mauritius, Panama and India.
Thanks to our broadened service network, we continued efforts in diversifying our customer base into other vessel segments like bulkers and tankers. With that, non-container liners contributed 45% to our revenue in 2024 compared to 32% in 2023. Furthermore, revenue from our liner clients, which are amongst the Top 12 container lines, has also increased year-on-year.
The increased business generated from liners also partially attributed to port expansion as there were unfortunately several geopolitical disruptions and tensions in 2024, such as Red Sea crisis, Middle East tensions and Ukraine-Russia conflicts, which has caused the liners to sail across new routes and hence have the need for bunkering in more ports.
Going forward, we are looking into balancing the economical of scale from existing network with our expansion into more strategic locations.
MT: CBL previously mentioned that the introduction of B24 biofuel has been a strategic focus, with operations in Hong Kong, China, and Malaysia. How do you expect biofuels to develop in 2025?
We have since also expanded our coverage to the world’s largest bunkering hub and completed our first B24 supply in Singapore early this year.
Our biofuel sales in 2024 surged by over 600% comparing to 2023 demonstrating the robust demand for biofuel.
As the regulations for IMO for GHG emissions and FuelEU Maritime regulations are tightening, demand will continue to rise with as there are increasing needs for ship owners to fulfill the regulations.
According to market research company Exactitude Consultancy, the global green marine fuel market is anticipated to grow from USD 11.57 billion in 2023 to USD 201.35 billion by 2030, at a CAGR of 50.4% during the forecast period.
Embracing this opportunity, we shall see the sustainable fuel market as one of our focus points in moving forward.
MT: The bunkering industry is highly competitive. How does CBL maintain competitive advantage in a turbulent world?
CBL’s competitive advantage lies in its extensive global supply network, one-stop refuelling solutions and quality of services, which streamline operations for customers.
Our comprehensive global network of over 60 ports provides access to flexibility and operational reliability, as well as competitive pricing, while our compliance framework ensures adherence to environmental standards.
Serving nine out of 12 of the top global container liner is also a strong proof of CBL’s market reputation and effective supply network.
Staying ahead of the market trend is important. We were the first to blend biofuel in several key ports in Asia. It was quite challenging at first because biofuel was not a product that you can buy from one supplier. We had to buy UCOME and Fuel oil separately and delivered the two products to a blending tank or barge to make B24. It takes time and efforts to locate partners to work with and modify the workflow to increase biofuel delivery efficiency.
But as one as of the first mover in biofuels in the region and we have conducted many biofuel deals since then, this increases our competitiveness within the industry as we can provide solutions to customers in a timely manner.
Going forward, under the backdrop of decarbonisation targets implemented to the marine transport industry, it is almost certain that vast opportunities will arise. The uncertainty is which one of these alternative fuels will be relatively popular compared to the others. It is also possible that more than one of them will become widely adopted. The challenges include infrastructure needs, abundant and stable supply.
We have and will closely monitor market trends and as a trading company with limited fixed investment, we are more agile to adapt to new market trends.
MT: What trends you observed regarding biofuel, bunker trading operations and sales margin? How will the focus on biofuels and economies of scale contribute to improvement of profitability?
In 2025, we aim to increase sales volume and recover gross profit margins through network strengthening and expansion, developing new customer, and increasing sustainable fuel adoption.
- Strengthening and expanding our service network: Strengthening and expanding geographic coverage to maximise sales volume and customer reach.
- Maximising sales volume: Targeting new customer segments while deepening relationships with existing clients.
- Exploring sustainable fuels: Prioritising biofuels (e.g., B24, B30) and other green alternatives to capitalise on higher-margin opportunities.
Since the beginning of 2025, our strategic efforts have yielded positive results. Simultaneously, economies of scale from expanded operations will reduce unit costs, further supporting profitability. These efforts, coupled with disciplined expense management, position us to navigate macroeconomic uncertainties while delivering value to stakeholders.
For biofuel, we closely monitor if the requirements of waste-based feedstock will evolve. Use cooking oil (UCO) is limited and if the demand of biofuel or Sustainable Aviation Fuel (SAF) is to continue to rise, there might be other UCO “substitutes” to be introduced to the market.
Therefore, besides working very closely with UCOME producers in Asia areas, we are also looking into other suppliers and performed some lab test of other blended products just to stay ahead in terms of market intelligence in case market demands evolve.
MT: Environmental regulations are driving demand for green fuels but also increasing compliance costs. How do you view the ESG market development?
The rising demand for green fuels and stricter regulations are not just challenges, they’re also opportunities. In response to IMO GHG Strategy, FuelEU Maritime aims to reduce carbon emission by at least 40% by 2030.
Many owners have placed a notable increase in orders for dual fuel engines vessels, which means the vessels can operate with traditional fossil fuel or biofuel fuel and alternative fuels such as methanol and LNG. This provides flexibility while transforming into sustainable energy sources.
In addition, many governments are also providing policies and tax incentives to support the adoption of alternative fuels. CBL is in close alignment with these regulations and market trends by expanding our biofuel supply network while exploring other sustainable fuels, such as LNG and methanol.
The company also sees this as part of our Environmental, social and governance (ESG) initiatives and long-term strategy in enhancing our corporate value.
MT: With cash increasing modestly to USD 8.02 million by year-end 2024, how do you plan to allocate funds or seek additional financing to sustain growth momentum?
We are focusing on network expansion, the supply of biofuels, automation, possible options to bring long-term shareholders value and expanded our funding sources by accessing capital markets, such as private placements, At-the-Market (ATM) offerings and shelf registration to increase financial flexibility.
Related: CBL International reports net loss of USD 3.87 million for FY 2024
Photo credit: Manifold Times
Published: 6 May, 2025
Interview2 days ago