Hong Kong-listed NewOcean Energy Holdings Limited on Monday (30 August) posted losses for the six months ended 30 June 2021 (1H 2021), due to a drop in overall sales volume and gross profit derived from sales being unable to cover all the expense incurred.
The company posted loss of HKD 169.96 million (USD 21.83 million) in 1H 2021, 87% down from loss of HKD 1.35 billion in 1H 2020.
Revenue for the period decreased by around 52% to approximately HKD 6.01 billion mainly due to the drop in total sales volume of energy products from approximately 3,648,000 tonnes to approximately 1,512,000 tonnes.
“Since the Group is under debt restructuring and the banks froze their credit facilities granted to the Group, the business operations are wholly financed and supported by the internal resources of the Group,” it explained.
“Therefore, the Group has no choice but to downsize the operation level in current period.”
NewOcean’s business segments include the sales and distribution of LPG, sales of electronic products, and its oil products business that includes its bunkering business.
Its oil products business segment recorded loss of HKD 205.28 million in 1H 2021, down 69% from loss of HKD 657.6 million in 1H 2020. Revenue for the similar segment was HKD 3.5 billion in 1H 2021, 53% lower than revenue of HKD 7.5 billion in 1H 2020.
Moving forward, NewOcean’s indicates its oil produces business, including bunkering, will be scaled down.
“Being all set for the significant scale-down of our oil products business, we are committed to focusing not only on the sales of products with high gross profits, but also on lowering our costs,” it states.
“When the costs of refuelling business in Hong Kong are relatively high, the Group will step up its efforts to sell wholesale to our clients who are distributors, and to lease its existing oil tankers to wholesalers or list them for sale.
“As to our business in Singapore, only small portion of its marine bunkering business will remain.
“Meanwhile, the Group will take the occupancy of a small portion of the total leased capacity of 300,000 tonnes of floating storage unit, while the remaining part will be leased to third parties for cost saving purposes.”
Related: NewOcean Energy Holdings forecasts 87% decrease net loss on year for 1H2021
Related: NewOcean posts USD 479 million FY 2020 loss; possible downsize of oil business
Related: NewOcean Energy delays release of 2020 financial results; to be published by end June
Related: NewOcean appoints Crowe as new auditors; replaces Deloitte Touche Tohmatsu
Related: NewOcean creditor scheme meeting dates at courts now ‘unrealistic’; delayed till further notice
Related: NewOcean auditors resign due to significant outstanding documents & information
Related: NewOcean revises creditor scheme meeting dates at Hong Kong, Bermuda Courts due to ‘substantial’ amendments
Related: NewOcean records USD 304.3 million loss, portion of SG bunkering business to remain
Related: NewOcean Energy issues USD 304.8 million net loss warning ahead of FY 2020 results
Related: NewOcean proposal to adjourn court scheme meeting approved by creditors
Related: NewOcean creditors meeting application granted by Supreme Court of Bermuda
Related: NewOcean planning creditors meeting, foundation of debt restructuring plan laid out
Related: NewOcean records USD 174 million 1H 2020 loss; Singapore bunkering business remains
Related: NewOcean Energy publishes profit warning to shareholders ahead of 1H 2020 results
Related: NewOcean Energy records 66% bunker sales jump to 4.5 million mt in FY 2019
Photo credit: NewOcean Energy Holdings
Published: 31 August, 2021
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