Business

Exclusive: Banle Group sets sights on expanding bunker supply network with successful IPO on Nasdaq

Following closing of CBL International Limited’s IPO on Nasdaq Capital Market, Banle Group revealed to Manifold Times its plans of enlarging the number of local marine fuel suppliers and increasing its bunkering options to customers.

Published

1 year ago

June 13, 2023

Admin

In an exclusive interview with Singapore-based bunkering publication Manifold Times, marine fuel logistics firm Banle Group recently shared insights on the recent successful listing of CBL International Limited, its listing vehicle, on the Nasdaq Capital Market.

Mr. Teck Lim Chia, Chairman and Chief Executive Officer provides details on how much was raised in the initial public offering (IPO) and its plans on using the net proceeds to further grow and strengthen its bunkering business:

MT: Could you give our readers a brief introduction of the Banle Group?

Banle Group is an established marine fuel logistic company in Asia Pacific providing customers with one stop solution for vessel refuelling. We are a bunkering facilitator as referred to in the bunkering industry.

Our main market is the Asia Pacific market with business activities taking place in the major ports of Japan, Korea, China, Hong Kong, Taiwan, Vietnam, Malaysia, Singapore, Thailand, and other countries like Turkey, Belgium.

We currently have a network of over 40 ports in Asia Pacific region to supply marine fuel to our customers, making us one of the few bunkering facilitators that can provide network-based service in this part of the world.

We strive to provide our customers with the best quality bunker services and to become our customers’ best partner in providing tailor made and flexible solutions for vessel refuelling.

MT: How much was raised during the IPO? Was it USD 13.3million or oversubscribed at USD 15.3 million?

Initially, we offered 3,325,000 shares at an offering price of US$4 per share, raising USD 13.3 million. At the time of the IPO, the underwriters exercised their over-allotment in part for an additional 425,000 shares, hence, totalling 3,750,000 shares being offered, raising USD 15 million.

MT: During the announcement of the IPO, Banle said it intends to use the net proceeds to ‘enlarge the number of local suppliers to enhance its competitiveness’. Could Banle elaborate what this means to the bunkering industry?

We intend to establish new business relationships with additional local bunker suppliers in additional ports for which we will need the financial resources to make payments in advance for transactions before those local suppliers consider offering any trade credit to us.

Making use of the proceeds from the IPO, we intend to commence the business relationships with the new suppliers who may request payment in advance, or the issuance of letter of credit for their sales of the marine fuel.

MT: Banle also announced it intends to use the net proceeds to ‘increase the service options available in the Singapore and South Korea markets’? How does this trickle down into Banle’s bunkering business?

We constantly receive inquiries from customers for quotations and orders. However, in the past, we may not be able to fulfil all enquiries due to limitation of financial resources or lacking sufficient local bunker supplies in certain ports. As mentioned above, with the proceeds from the IPO and the expansion of our network of supply, we are now in a better position to establish new business relationships with additional local supplies, which in turn, will increase our ability to provide more bunkering options to our customers.

MT: In relation to the above two questions above on Banle’s intentions on utilising the funds, what is Banle’s plan to turn them into reality?

We intend to penetrate the market by soliciting new marine fuel suppliers to capture the demand from our existing customers or new customers in the Singapore market. In particular, we intend to establish such new business relationships with local suppliers for which we might need to pay in advance for transactions. To facilitate market development in Singapore, we have set up a new office in Singapore and employed two staff members.

Similar to Singapore, it is a challenge for us to obtain trade credit from local suppliers without established business relationships. With our aim to strengthen our supply network in South Korea, we plan to develop business relationships with potential suppliers in Ulsan and other ports in South Korea in order for us to provide a more flexible supply network to meet the demand of our existing customers and potential customers. To facilitate market development in South Korea, we have employed one staff member who is based in South Korea.

MT: Can you describe the challenges to execute Banle’s expansion plans and how will the company overcome them in current market conditions?

The fluctuations in marine fuel price may affect our working capital requirements. If the marine fuel prices increase substantially, we could only purchase less marine fuel from our suppliers with the same level of financial resources. We are therefore vulnerable to such unfavourable changes from the fluctuation of marine fuel prices. In the event that there is a significant increase in the price of marine fuel, we might require additional working capital in order to fulfil our customers’ needs.

To mitigate the effects of working capital limitation and unexpected increase in marine fuel price, it is our strategy to strengthen the financial resources available to us by utilising bank facilities and to obtain better trade credit from our suppliers.

Photo credit: Banle Group
Published: 13 June, 2023

Biofuel

Argus Media: Bunkering sector needs deeper dive into B24 bio bunker fuel market

‘As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector,’ says Mahua Chakravarty of Argus.

Published

17 hours ago

October 4, 2024

Admin

Argus Media organises free admission ‘Argus Asia B24 Forum’ for bunkering sector

Ahead of Argus Asia B24 Forum, Manifold Times interviewed Mahua Chakravarty, Head of Marine Fuels Pricing (Asia) of independent global energy and commodity market intelligence provider Argus Media; she explains the growing prominence of B24 bunker fuel in the marine sector and believes it is imperative for the bunkering sector to deepen its knowledge on it:

MT: Why is it important for the bunkering sector to know more about the B24 bunker fuel market?

B24 has emerged as the first alternative marine fuel that allows ship-owners and charterers a drop-in fuel option, and make greenhouse gas (GHG) savings, for their voyages into EU and territorial waters.

It has proved to be the most practical solution for ship-owners that eliminates costly retrofitting charges. The easy availability of used cooking oil methyl ester (UCOME) as a blendstock from China and southeast Asia, also adds to its overall attractiveness as an alternative fuel.

B24 consumption in the port of Singapore recorded multi-fold jumps to touch 518,000t in 2023 as ship-owners fuelled for trials in preparation for the implementation of EU-led mandates like the EU Emissions Trading Scheme (ETS) and the Carbon Intensity Index (CII) rating. In 2024, B24 demand has continued to grow with 377,800t of consumption seen up to August, according to statistics from the Maritime and Port Authority of Singapore (MPA).

As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector. Being the first generation of new marine fuels, B24 has shown the way that biofuel blends can provide a solution for ship-owners/charterers to meet compliance mandates set by the EU and IMO.

MT: Why has Argus developed its own B24 Singapore price index? What's so special about it and why should the industry adopt it as a benchmark?

Argus was the first to launch its spot B24 delivered on board (DOB) Singapore assessment in January 2023, thus introducing price discovery for this market at its point of inception. The past 1.5 years of daily price assessments of B24, using a robust market survey approach, has built Argus’ understanding of this market from the start.

We have seen the growth of liquidity and the quest among refiners, traders, ship-owners to find pricing solutions for a nascent market. We have been at the forefront of capturing spot liquidity growth and in assessing prices for this market.

This index is now considered a key price assessment by key refiners, traders, ship-owners and other stakeholders in the market.

MT: What takeaways can each segment of the bunkering sector such as bunker buyers, bunker traders, and shipowners receive from the upcoming Argus B24 forum?

The Argus B24 Asia Forum is aimed at showcasing some of these learnings by a global team that covers key markets like Singapore, China and Europe. Our global team will present their insights on the key trends driving demand for marine biodiesel globally.

As the marine sector marches onwards with the bunkering of higher biofuel blends, this forum will allow the audience to reflect on the key factors that have driven the marine biodiesel sector. It will provide insights to make better decisions about infrastructure, pricing, feedstock-related issues and what blends are likely to be prevalent in the coming year.

We will be hosting a panel discussion at this forum that will include key players driving the marine biodiesel space in Singapore and other regions.

The Argus Asia B24 Forum will be held in The Village Hotel (The Events Centre by Far East Hospitality), Sentosa, Singapore (Google Maps) on 8 October between 4.00pm to 7.00pm Singapore Time.

Participants are encouraged to register for the free event via the custom link here.

Photo credit: Argus Media
Published: 4 October 2024

Bunker Fuel

Brazil: Raízen launches new bunkering operation in Itaqui

Operation will support both coastal and oceangoing vessels at Off Port Limits, allowing the firm’s customers to avoid full port call fees and unnecessary deviations, says Paula Georgopoulos Tinoco.

Published

18 hours ago

October 4, 2024

Admin

Brazil: Raízen launches new bunkering operation in Itaqui

Brazilian energy firm Raízen has launched its new bunkering operation in Itaqui at the Outer Anchorage Area, according to Paula Georgopoulos Tinoco, Bunker Sales Coordinator at Raízen on Wednesday (3 October).

The firm is providing local supplies for the grades VLSFO380 (max. 0.5%S) and LSMGO DMA (max. 0.1%S).

“The new bunkering operation will support both coastal and oceangoing vessels with different sizes and class at the Off Port Limits, allowing our customers to avoid full port call fees and unnecessary deviations at different bunkering ports,” she said in a social media post.

In September last year, Bunker Holding subsidiary Bunker One announced that it partnered with Acelen, the largest bunker producer in the Brazilian state of Bahia, to offer the only outer anchorage bunkering operation in Brazil at the time.

Starting September 2023, vessels such as large cargo ships and tankers can be supplied in the anchorage area of the Port of Itaqui in São Marcos Bay (MA).

Photo credit: Raízen
Published: 4 October, 2024

Business

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

Oberholtzer, a finance executive with over 25 years of experience, joins Infineum from Shell, where he has held various senior positions including Senior Vice President of Shell Finance for Chemicals and Products.

Published

18 hours ago

October 4, 2024

Admin

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

International fuel additives company Infineum on Thursday (3 October) announced the appointment of Mr. Rahim Oberholtzer as the new Chief Financial and Strategy Officer, effective 1 October.

Oberholtzer will succeed Mr. Philippe Creteur, who has retired at the end of September 2024, after 18 years of dedicated service to Infineum.

Oberholtzer, a seasoned finance executive with over 25 years of diverse experience, joins Infineum from Shell, where he has held various senior positions. His most recent role was Senior Vice President of Shell Finance for Chemicals and Products.

During his career, Oberholtzer has acquired extensive expertise in public accounting, investment banking, and trading. He began his professional journey at KPMG in San Francisco as an auditor. He then moved on to Merrill Lynch, focusing on mergers and acquisitions and equity offerings within the energy sector, ultimately serving as Head of Structured Finance at Merrill Lynch Commodities.

In 2011, he joined Shell’s Mergers and Acquisitions team in the U.S., leading key projects such as the launch of Shell Midstream Partners and the Eagle Ford divestment. He subsequently managed finance teams in Trading & Supply, covering European Gas & Power, Global Crude, and Global Products & Operations.

Infineum CEO Aldo Govi, said: “We are deeply grateful for Philippe’s years of dedication and excellent contribution to Infineum. At the same time, I am thrilled to welcome Rahim to our corporate leadership team.”

Photo credit: Infineum
Published: 4 October, 2024