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NewOcean records USD 304.3 million loss, portion of SG bunkering business to remain

‘A portion of our marine bunkering business in Singapore will remain, with a focus on oil products of relatively stable gross profits and high sulphur fuel oil,’ it said.
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New Ocean Energy 1

Hong Kong-listed NewOcean Energy Holdings Limited (NewOcean) on Wednesday (31 March) reported in its unaudited financial year 2020 results (FY 2020) that its gross profit margin derived from oil bunkering business has been substantially reduced or turned into gross loss margin due to COVID-19 and the slump in global oil prices in first half year of 2020.

The group said its overall gross margin for oil products and electronic components decreased to 1.0% as compared to 6.8% last year.

The group recorded net loss of HKD 2.366 billion (USD 304.3 million) during FY 2020, mainly due to the drop in gross profit and additional impairment provision for goodwill, intangible assets, trade receivables, other receivables, inventories and property, plant and equipment, etc.

Its revenue for the year decreased by around 30.99% to approximately HKD 19.180 billion attributed primarily to the fall in average price of energy products as well as the drop in total sales volume. In FY 2019, NewOcean saw HKD 27.791 billion in revenue.

The group’s sales volume for energy products fell to approximately 5.64 million metric tonnes in 2020 compared to 7.51 million metric tonnes in 2019. 

Specifically, the company’s oil products business generated total sales revenue of HKD 224.1 million with a gross margin of 2.04% in FY 2020 compared to HKD 848.2 million revenue and a gross margin of 4.4% in FY 2019.

For the past twenty years, NewOcean said it has always kept up its obligations and has never breached any debt covenants. However very unfortunately, from April 2020 onwards, a series of unexpected negative events caused banks to freeze the group’s credit and request for early repayment.

The pandemic, slump in oil prices, and the stand-off between China and the United States seriously affected the group’s business especially the oil bunkering business in Hong Kong and Singapore and the electronic business in the People’s Republic of China.

As a result, the gross profit margin derived from oil bunkering business and electronic business has been substantially reduced as compared to last year or in certain cases turned into gross loss margin.

Due to severely unfavourable market conditions, some of the group’s key competitors in the oil products market sold large lots of inventory at bargain prices to cash in during March and April.

NewOcean said it was a tough decision to for the group to reluctantly follow suit and slash prices under the pressure of its mounting inventories over the successive months, resulting in a steep dive in its overall gross profits for energy products.

Adverse market sentiment also caused its oil product clients to delay the repayment of trade or other receivables to a significant extent; for which, an allowance for impairment loss of about HKD 760 million had been made.

In 2020, more than 10 monohull [single hull] oil tankers had been written off due to a change in the specifications of oil tankers in  Mainland China, and the group had shut down a number of auto-gas refueling stations because of the decreasing demand, resulting in a loss of approximately HKD 120 million for the disposition of the above fixed assets.

With limited liquidity from to the lack of support from banks to back its business NewOcean said it decided to scale down both its marine and on-land bunkering businesses; and hence, an allowance for impairment of approximately HKD 420 million was made at the end of the year.

Additionally, due to the crash of Hin Leong Trading (Pte.) Ltd. and the slump in global oil prices during the first half of 2020, many banks had extended requests to the group limit or terminate the utilization of letters of credit and other short-term credit facilities.

In order to ease pressure on liquidity and improve the financial position of the group, NewOcean’s directors implemented a range of measures, including opening negotiations with banks which resulted in an agreement for debt restructuring.

“With the significant scale-down of our oil products business, we are committed to focus not only on the sales of products with high gross profits, but also on lowering our operating costs,” said NewOcean.

“As the costs of refueling 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, a certain extent of the marine bunkering business will remain, with oil products of relatively stable gross profits and high sulphur fuel oil being the key focus of the business. 

“Meanwhile, the group will take the occupancy of a small portion of a total leased capacity of 300,000 tonnes in a floating storage unit, while the remainder will be leased to third parties to keep running costs down.”

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
Published: 1 April, 2021

 

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Methanol

China launches methanol shipping supply chain alliance to accelerate green transition

Marine fuel suppliers in the alliance include Sinopec Fuel Oil Sales, China Marine Bunker (PetroChina), SIPG Energy (Shanghai), and Shenzhen Port Energy Development.
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July 17, 2026

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China Waterborne Transport Research Institute under the Ministry of Transport and China Transport News recently jointly launched a Methanol Fuel Shipping Supply Chain Innovation Alliance with 20 organisations spanning the shipping, port, energy, equipment, research and industry association sectors.

The alliance was officially announced during the main event of China Maritime Day 2026 on 11 July, where members also released a joint initiative to develop a collaborative methanol-fuelled shipping supply chain.

The alliance aims to implement China’s national strategy for green economic transformation and support the Ministry of Transport’s “One Network, Four Modernisations” initiative by building a safe, efficient, economical and reliable methanol marine fuel supply chain

Under the joint initiative, alliance members pledged to align with China’s national decarbonisation strategy by promoting methanol as a key pathway for the shipping sector’s green transition and optimising the industry’s energy mix.

The members also pledged to strengthen collaboration across the supply chain to improve coordination between bunker fuel production, transportation and end users while advancing technological innovation.

Lastly, the alliance will support the development of policies, planning and technical standards, promote resource sharing and joint research, and accelerate the large-scale adoption of methanol as a marine fuel.

The alliance brings together companies and organisations representing the entire methanol shipping supply chain.

Members include shipping and port members such as China Changjiang National Shipping (Group) Corporation, COSCO Shipping Bulk Co., Ltd., Shandong Port Group, and Wuhan Chuangxin Jianghai Shipping Co., Ltd.

Energy companies in the alliance include Sinopec Chemical Commercial Holding Company Limited and Methanex Corporation.

Marine fuel suppliers including Sinopec Fuel Oil Sales, China Marine Bunker (PetroChina), SIPG Energy (Shanghai) Co Ltd and Shenzhen Port Energy Development Co Ltd are also part of the alliance. 

Equipment manufacturers in the alliance are CSSC 711th Research Institute, CSSC Power (Group) Corporation Ltd and Chongqing Hongjiang Machinery Co Ltd.

Research, media and industry organisations participating in the alliance include the China Waterborne Transport Research Institute, China Transport News, and the Methanol Institute.

The Methanol Institute said methanol is moving beyond individual projects towards coordinated action across the entire value chain. 

“And China continues to play a leading role in advancing methanol as a marine fuel,” it said in a social media post.  

“We’re proud to work alongside our fellow alliance members to help strengthen the methanol supply chain and support the continued growth of methanol as a marine fuel.”

 

Photo credit: David Yu from Pixabay
Published: 17 July, 2026

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Alternative Fuels

KR, HD Hyundai tap first ammonia dual-fuel sea trial to develop vessel operating standards

Trial generated data on the vessel’s fuel supply system and engine, which will provide a technical foundation for KR’s future development of domestic guidelines for ammonia-fuelled ships.

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KR, HD Hyundai tap first ammonia dual-fuel sea trial to develop vessel operating standards

Korean Register (KR) on Tuesday (14 July) said it is collaborating with HD Hyundai Heavy Industries (HHI) to establish a domestic operating environment for ammonia-fuelled vessels under the Ministry of Oceans and Fisheries’ Green Shipping Corridor Construction Support Project. 

The initiative supports the development of ammonia as one of the most promising next-generation marine fuels.

HHI recently conducted a sea trial of Korea’s first ammonia dual-fuel propulsion vessel. The trial generated operational data on the vessel’s fuel supply system and engine, which will provide a valuable technical foundation for KR’s future development of domestic guidelines for environmentally friendly vessel operations and supporting wider maritime decarbonisation efforts.

A spokesperson for HD Hyundai, said: “Drawing on our group’s R&D capabilities and on-site technical expertise, we have made meaningful progress in advancing the application of ammonia as a marine fuel. We expect this to help enhance a sustainable maritime ecosystem while strengthening the competitiveness of Korea’s shipbuilding industry.”

Kim Daeheon, Executive Vice President of KR’s R&D Division, added: “The close collaboration between KR and HD Hyundai has enabled us to build the technical foundation for introducing ammonia-fueled vessels in Korea. We will continue to drive national projects forward together with HD Hyundai and establish technical standards befitting the era of Green Shipping Corridors.”

 

Photo credit: HD Hyundai Heavy Industries
Published: 17 July, 2026

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Wind-assisted

DNV awards TADC to Econowind for VentoFoil 3-Series

System actively harnesses wind power to generate forward thrust, helping to reduce bunker fuel consumption and mitigate FuelEU penalties.
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DNV awards TADC to Econowind for VentoFoil 3-Series

Dutch wind-assisted propulsion technology firm Econowind on Wednesday (15 July) said it has received a Type Approval Design Certificate (TADC) from classification society DNV for its VentoFoil 3-Series boundary layer suction wing. 

The company said the certification confirms compliance with DNV’s ST-0511 standard for Wind-Assisted Propulsion Systems and enables easier integration of VentoFoils on DNV-classed vessels worldwide. 

Econowind added that the approval accelerates the deployment of wind propulsion across the shipping industry.

“DNV is one of the world’s leading classification societies. This TADC gives DNV-classed shipowners confidence that VentoFoils meet the highest industry standards,” said Chiel de Leeuw, Chief Commercial Officer at Econowind. 

“It simplifies the approval process for both retrofits and newbuilds. VentoFoils are ideal for late-stage design integration and retrofit projects. This is an important milestone for Econowind and for the wider adoption of wind-assisted ship propulsion.”

The 3-Series VentoFoil is Econowind’s best-selling suction wing to date, with over 150 units sold. The system actively harnesses wind power to generate forward thrust, helping to reduce fuel consumption and mitigate FuelEU penalties. The system includes a tilting foundation, allowing the wings to be tilted down during port operations or in adverse weather conditions, making it a flexible solution.

The TADC applies to the 16-meter VentoFoil 3-Series product design and supports easy integration into DNV-classed vessels without repeating the full design assessment process. This enables shipowners, shipyards, and project teams to move more efficiently from concept to installation, reducing project complexity and accelerating deployment. 

Hasso Hoffmeister, Senior Principal Engineer at DNV Maritime, said: “It is a great pleasure to award Econowind this new certificate. WAPS have been going from strength to strength over the past few years, from 2022 the number of vessels in operation has increased five times, and we’ve now topped the century mark. 

“And with the current advances in technology, materials, and production capacity in the segment, we expect this to accelerate. So, while the wind always changes, the shipping industry is likely to be sailing strong for years to come.”

Econowind expects the DNV Type Approval Design Certificate to accelerate adoption of the VentoFoil, particularly among shipowners seeking proven, independently certified technology that can support fuel savings, emissions reductions, and decarbonization goals.

MS Heinz of HS Schiffahrt is among the first vessels to sail under this TADC.The company said the approval builds on Econowind’s growing installed base and further strengthens confidence in wind-assisted ship propulsion as a practical solution to address energy scarcity and high fuel prices. 

In addition to the 3-Series, Econowind offers the 5-Series for the deep-sea market.

 

Photo credit: Econowind
Published: 17 July, 2026

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