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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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Hong Kong-based bunker trading firm E-Marine expands ops with new Shanghai branch office

The HONG KONG E-MARINE SHANGHAI BRANCH will assist E-Marine’s head office in handling bunker trading operations and increase overall bonded bunker trading volumes at China.
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June 4, 2026

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Hong Kong-based marine fuel and lubricant trading company Hongkong E-Marine Supply Service Corporation Limited (E-Marine) on April 15 launched a branch office in Shanghai, learned Manifold Times.

The company HONG KONG E-MARINE SHANGHAI BRANCH will assist the head office in handling bunker trading operations and increase overall bonded bunker trading volumes at China, Managing Director Darcy Wang told the bunkering publication.

“The Shanghai office serves as our China business support and coordination centre. It enables us to stay close to our customers, suppliers and business partners, while also providing access to a deep pool of industry talent,” he shared.

“This development is in line the target to significantly increase our annual bonded bunkering portfolio in China to 1 million metric tonnes (mt) by 2030.

“As we continue to expand our presence in China, we welcome capable and motivated individuals who share our long-term vision to join our Shanghai office.”

E-Marine’s new Shanghai office address is as follows:

Shanghai Xuhui District
Chang Ning Road No.889
Shanghai Yang Guang Bin Jiang Center
Unit 22-13

Candidates interested in growing together with E-Marine are invited to send their CV or profile to [email protected].

E Marine Shanghai office tea cups

Related: E-Marine raising China bonded bunker trading portfolio to 1 million mt by 2030, seeks talents
Related: Hong Kong-based bunker trading firm E-Marine obtains ISCC EU certification
Related: Hong Kong-based bunker trading firm E-Marine introduces Global Sales & Procurement Manager
Related: Hong Kong-based bunker trading firm E-Marine expands operations with Singapore branch
Related: Bunker and lube trading firm Hongkong E-Marine Supply Service to open Singapore branch by June

 

Photo credit: Manifold Times
Published: 4 June 2026

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Biofuel

BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

Bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier “Berge Lyngor”, which was bunkered in Singapore in early May.

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June 3, 2026

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BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

BHP and the Global Centre for Maritime Decarbonisation (GCMD) on Wednesday (3 June) said they have blended biofuels from two distinct feedstocks—used cooking oil and waste animal fats —and introduced the lower-emissions marine fuel into a BHP-chartered bulk carrier as part of a pilot project.

The bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier Berge Lyngor, owned and operated by Berge Bulk, transporting BHP iron ore from Western Australia to China. When run on bio-blend, the vessel has the potential to reduce well-to-wake greenhouse gas emissions by approximately 79 per cent per voyage compared to sailing on very low sulphur fuel oil (VLSFO).

The vessel bunkered in Singapore in early May with a B100 bio-blend comprising 50 percent tallow-derived biodiesel, sourced and supplied by HAMR Energy, and 50 per cent used cooking oil (UCOME) supplied by Mitsui & Co Energy Trading Singapore (METS).

Mitsui also blended the fuel and Dan-Bunkering coordinated and executed the bunkering operation, which was performed by Global Energy’s barge MT Maple.

The BHP and GCMD pilot will assess how biofuels from multiple feedstocks can be blended, handled, and introduced under real-world operating conditions using existing used cooking oil bunkering infrastructure.

At the same time, insights from this pilot will help identify solutions to challenges related to fuel quality, handling, traceability, and onboard vessel performance.

Biofuels for global shipping today rely heavily on used cooking oil – a feedstock whose availability is approaching its projected limits. Biofuel from waste animal fats presents a promising option to expand the supply of lower-emissions marine fuels.

The outcomes of the pilot are expected to shed light on the practical steps to integrate biofuel blends from different feedstocks into existing supply chains. The diversity of biofuels will provide shipowners and operators with greater flexibility to optimise fuel procurement based on cost, availability, and lifecycle emissions performance.

Biofuels derived from different feedstocks can exhibit varying properties that may impact operations, including potential corrosion from oxidation, fuel system clogging caused by wax formation, which this pilot aims to assess.

The pilot will trace and verify the biofuel blend’s integrity aimed at bolstering confidence in emissions reductions reporting. The pilot will also provide insights into how robust tracing can support future marine fuel supply chains where biofuels from multiple feedstocks with varying lifecycle greenhouse gas emissions footprints are blended together.

This project is co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund (MINT).

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 3 June, 2026

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Biofuel

NYK starts one-year B100 bio bunker fuel trial on car carrier

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices.
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June 3, 2026

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NYK starts one-year B100 bio bunker fuel trial on car carrier

Japanese shipping firm NYK on Tuesday (2 June) said it has commenced a one-year long-term trial involving the continuous use of 100% biofuel (B100) on an NYK-operated car carrier. 

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices. High-purity biofuels such as B100 are known to be susceptible to degradation from oxygen, light, and heat, raising concerns about the stability of such fuels during long-term use.

In this trial, the biofuel primarily comprises FAME (Fatty Acid Methyl Ester) derived from used cooking oil and similar feedstocks.

The initiative is designed to evaluate the fuel’s effects on the vessel’s equipment and verify operational safety under real-world conditions. 

Through this effort, NYK seeks to accumulate technical expertise that will support the broader use of high-purity biofuels and further accelerate efforts to reduce greenhouse gas (GHG) emissions.

NYK has been advancing the use of biofuels through various initiatives. In 2024, the company conducted a trial using biofuel blend B24 and subsequently expanded practical usage to B30. However, the company said there remains limited global experience with the long-term continuous use of B100.

“By collecting long-term operational data through this trial, NYK aims to accumulate valuable technical insights to support both the safe operation of vessels and the wider adoption of high-purity biofuels,” it said. 

 

Photo credit: NYK
Published: 3 June, 2026

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