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

New York-listed global energy management company World Kinect Corporation on Thursday (24 April) recorded a 9.4% on year decrease in gross profit for the first quarter (Q1) of 2025.

The company posted gross profit of USD 230 million in Q1 2025, lower than gross profit of USD 254 million seen during Q1 2024.

Revenue for its combined aviation, land and marine segments in Q1 2025 was USD 9.45 billion, a 13.7 decrease from revenue of USD 10.95 billion in Q1 2025.

Specifically, the marine segment generated gross profit of USD 35.7 million in Q1 2025, a drop of 26.2% on year from USD 48.4 million in Q1 2024.

This was principally due to lower bunker fuel prices and further reduced volatility that had benefited prior year results, as well as reduced demand and lower margins in the company’s resale and physical businesses as a result of increasing market uncertainty.

In total, WFS sold 3.7 million metric tonnes (mt) of bunker fuel during Q1 2025, down by 14% from 4.3 million mt of marine fuels during the similar period of last year.

According to a slide deck of the latest results by World Kinect on Seeking Alpha, the company’s outlook for Q2 2025 is that gross profit for the marine segment is expected to be down modestly year-over-year, assuming continuing uncertainty in the global shipping markets.

Photo credit: Shaah Shahidh on Unsplash
Published: 28 April, 2025

CBL International Limited (CBL), the listing vehicle of Banle Group, a marine fuel logistic company in the Asia-Pacific region, on Thursday (17 April) announced its annual financial results for the year ended 31 December 2024.

The company reported a consolidated revenue of USD 592.52 million for the year, marking a 35.9% increase from USD 435.90 million in 2023. 

This growth was primarily driven by a 38.1% increase in sales volume, supported by the addition of new customers during the year, expansion of its supply network to cover more ports, and a broader customer base that now includes bulk carriers and oil and gas tankers in addition to container liner operators.

However, due to challenging market conditions, CBL reported a net loss of USD 3.87 million in 2024, compared to a net income of USD 1.13 million in 2023. 

This was mainly attributed to a 25.5% decrease in gross profit to USD 5.37 million in 2024 from USD 7.21 million in 2023 and a 56.8% rise in operating expenses to USD 8.70 million in 2024 from USD 5.55 million in 2023. 

The company adopted a volume-driven growth strategy that involved offering more competitive pricing in a market characterised by intensified competition and pricing pressure. 

“While this approach supported increased sales volume and market share, it also contributed to narrower profit margins,” it said. 

In addition to reduced gross margins, the net loss was impacted by increased expenses for business expansion, biofuel operation, additional expenses to enhance ESG, and a rise in interest expenses. These were partially offset by a reduction in income tax expenses. 

The financial outcome reflects both the dynamic nature of the bunkering industry and the company’s ongoing investment in client base development and geographic growth, which are expected to enhance long-term positioning as market conditions normalise.

Earnings per share (EPS) reflected this, decreasing to USD (0.136) in 2024 from USD 0.045 in 2023. Cash and cash equivalents increased by 8.3% to USD 8.02 million as of December 31, 2024 from USD 7.40 million as of December 31, 2023.

Business Expansion in Challenging Times

CBL International’s operational expansion was a key focus in 2024, particularly in a challenging industry environment marked by geopolitical tensions, such as the Red Sea crisis and broader Middle East tensions. The company grew its service network from 36 ports at the time of its IPO in March 2023 to over 60 ports by year-end 2024, covering Asia Pacific, Europe, Africa, and Central America. Revenue growth year-on-year was notable across China, Hong Kong, Malaysia, Singapore, and South Korea.

Key new ports included Mauritius, Panama, and India, enhancing its global reach. This expansion was supported by servicing nine of the world’s top 12 container shipping lines, representing nearly 60% of global container fleet capacity. The Company’s European expansion focused on strengthening cross-regional service offerings for Euro–Asia trade routes. Growth was supported by a stronger presence in the Amsterdam-Rotterdam-Antwerp (ARA) region and a new Ireland office established in late 2023, enhancing local sourcing capabilities.

Customer diversification was another priority, with the share of non-container liners in total revenue increased, and sales concentration among the top five customers declined in fiscal year 2024.

A significant highlight was the company’s push towards sustainability, with biofuel sales surging by 628.8% and volume by 603.0%. The introduction of B24 biofuel (76% fossil fuel, 24% used cooking oil methyl ester) in Hong Kong, China, and Malaysia reduced greenhouse gas emissions by 20%, supported by ISCC EU and ISCC Plus certifications secured in 2023. This aligns with global trends towards greener shipping solutions and positions CBL as a leader in sustainable fuel logistics.

Strategically, CBL enhanced its IT systems, implementing real-time order tracking, data analytics, and workflow automation to improve efficiency. Credit risk management was strengthened, and working capital management improved with increased factoring facilities and a cash balance rise, navigating macroeconomic challenges through pricing strategies and port network adjustments. Additionally, CBL expanded its funding sources by accessing capital markets, such as private placement, increasing financial flexibility to support growth initiatives.

CBL’s Outlook for the Future

Despite the net loss, CBL’s management remains optimistic about the future, viewing current industry challenges as an opportunity to build resilience and enhance customer loyalty. 

While prudently evaluating the impact of the latest US tariff policy, among other macro incidents such as geopolitical tensions, regulatory changes, and shifting global trade dynamics, on the economy and the bunkering sector, CBL believes its broad global network, primarily focused on intra-Asia and Euro-Asia trade routes, helps mitigate potential adverse effects. Since the company has no operation on U.S. ports, the impact of such policies may be limited in the near future.

The company’s strategic expansion of ports, diversification of its client base, and commitment to sustainable initiatives are designed to position it for growth when market conditions improve.

By investing in new ports and expanding relationships with key industry players, CBL aims to secure long-term partnerships that will strengthen its market position as global trade stabilises and profitability improves.

Dr. Teck Lim Chia, Chairman and CEO of CBL International Limited, stated, “We are confident in our strategy to expand our service network, maximise sales volume and explore sustainable offerings, even in these challenging times.”

“Our investments in new ports, diversified clients, and sustainable fuels are building a foundation for future growth. We believe that by demonstrating our capabilities at present, we will earn customer loyalty that will yield substantial benefits as the market recovers, positioning CBL International for significant success in the years ahead.”

Looking ahead, CBL remains focused on expanding its market presence, particularly in biofuels, and enhancing its global supply network. 

Photo credit: Kyle Sudu on Unsplash
Published: 17 April, 2025