Hong Kong-listed bunkering and oil trading company NewOcean Energy Holdings Limited ended its financial year (FY) of 2018 with a 9% fall in net profit due to the depreciation of Renminbi in 2018.
It posted net profit of HK $759.0 million (US $96.73 million) in FY 2018, lower than net profit of HK $835.6 million in FY 2017.
The revenue from operations in FY 2018 increased 36.0% to approximately HK $30 billion, from HK $22 billion in FY 2017.
The increase of sales resulted in overall gross profit rising by 21.1% to about HK $1,967 million.
“Although the overall gross profit increased, the depreciation of Renminbi in 2018 recorded a net exchange loss of approximately HK$124 million and due to the sharp fall of oil price at December end, the Group has provided a net realizable value allowance on inventories of HK$120 million,” it explained.
“Thus, profit for the year attributable to owners of the Company from operations decreased by around 9.17% to approximately HK$759 million.”
NewOcean’s subsidiary in Singapore, known as NewOcean Fuel (Singapore) Pte. Limited, achieved FY2018 marine bunker sales volume of approximately 1,213,000 metric tonnes (mt), contributing approximately 27% of the Group’s sales volume of oil products.
The Singapore subsidiary sold 118,700 mt at the republic in FY2017 due to it starting operations during November 2017.
In December 2018, the Group started leasing a floating warehouse with the size of around 300,000 tonnes for warehousing usages in Malaysia in order to get itself well-equipped for expected further growth in sales volume.
A breakdown of NewOcean’s oil product and bunker sales is as follows:
|Region of sales||Full year 2018||Full year 2017||Increase (decrease)%|
|HONG KONG||1,828,000 mt||1,957,300 mt||(7.46%)|
|Marine bunkering||805,000 mt||783,600 mt||2.73%|
|Land bunkering||102,500 mt||–||Not applicable|
|Trading of oil/chemical products||920,500 mt||1,191,700 mt||(22.76%)|
|SINGAPORE||1,213,000 mt||118,700 mt||921.90%|
|Marine bunkering||1,213,000 mt||118,700 mt|
|Oil products – sales at sea||678,600 mt||858,800 mt||(20.98%)|
|Oil products – sales on land||182,500 mt||210,100 mt||(13.14%)|
|Trading of oil/chemical products||591,900 mt||1,192,100 mt||(50.35%)|
|Total sales volume||4,494,000 mt||4,355,000mt||3.19%|
“Our long-term objective is to further increase the market share and explore stable and long-term suppliers and clients,” it states.
“We are currently planning to expand our marine bunkering business to all of the ports in Malaysia; meanwhile, our company in Singapore will provide supply services of oil and technical support for these new markets.
Related: NewOcean charters VLCC to support Singapore bunker ops
Related: Hong Kong: NewOcean Energy H1 net profit down 16% on year
Related: NewOcean Energy secures $169 million loan facility
Related: NewOcean Energy signals intent to enter Malaysia bunkering market
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Photo credit: NewOcean Energy Holdings Limited
Published: 25 March, 2018
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