Business

Maersk recovers to profit in 2018 despite rise in bunker prices

Spends $5.04 billion on bunker purchasing in 2018, 51% higher than $3.34 billion in the year before.

Published

7 years ago

February 22, 2019

Admin

Danish business conglomerate A. P. Moller – Maersk posted positive profit in 2018 due to “significant progress” in implementing its strategy, said its CEO.

Maersk recorded net profit of $3.22 billion in 2018, compared to net loss of $1.16 billion in 2017.

Revenue was $39.01 billion in 2018, 26% more than revenue of $30.95 billion in 2017.

Notably, Maersk Oil Trading saw revenue of $769 million in 2018, compared to $410 million in 2017, due to a higher level of oil/bunker trading with third parties.

“With the expected demerger and listing of Maersk Drilling in April, the separation of our Energy-related businesses will be almost complete,” noted Søren Skou.

“We have successfully integrated Hamburg Süd, accelerated our digital transformation and come together across sales, customer service, delivery and products as one company with customers at the centre of our attention.”

“In 2018, we accelerated our transformation and improved earnings despite lower than expected container volume growth and an increase in bunker fuel prices,” he adds.

The company’s annual report notes the average price of marine fuel was $424 per metric tonne (pmt) in 2018, 32% higher compared to 321 in 2017.

Its bunker consumption was 11,894,000 mt in 2018, 14.4% more than 10,395,000 mt.

Total bunker cost was $5.04 billion in 2018, 51% higher than$3.34 billion in 2017.

“Overall, the higher bunker prices, along with the higher consumption due to the inclusion of Hamburg Süd’s volumes, resulted in a total bunker cost increase of 51% to USD 5.0bn (USD 3.3bn) compared to 2017,” it said.

Moving forward, Maersk says has committed $263 million for investing in scrubbers and retrofitting operations as preparations for IMO 2020.

“Scrubbers form one element of the Maersk 2020 fuel sourcing strategy, while most of the fleet will rely on compliant low sulphur fuels when the regulation starts,” it notes.

“To cover the estimated extra fuel costs, which could exceed USD 2bn per year following the new bunker regulations, a new Bunker Adjustment Factor (BAF) was announced.

“This is designed to balance fluctuations in fuel costs while also enabling customers to predict, plan and track how changes in fuel prices impact their total freight rates.”

Photo credit: A. P. Moller – Maersk
Published: 22 February, 2019

Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

Published

19 hours ago

July 21, 2026

Admin

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July).

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions.

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Photo credit: Sora Shimazaki
Published: 21 July, 2026

Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

Published

19 hours ago

July 21, 2026

Admin

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Photo credit: Drew Beamer
Published: 21 July, 2026

LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

Published

19 hours ago

July 21, 2026

Admin

PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post.

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024.

Photo credit: Pacific International Lines
Published: 21 July, 2026