Oslo-based metformin producer Vistin Pharma says its energy trading division had lost NOK 101.3 million (US $11.8 million) as of Wednesday (3 January) on financial derivative contracts to take advantage of the global change in sulphur specifications for marine fuel in the global shipping industry in 2020.
The oil derivative contracts entered into by Vistin Pharma are based on the price difference between bunker fuel with 3.5% sulphur content and 0.5% sulphur content.
Vistin Pharma says it expects the market price for fuel with a low sulphur content will increase, while the price for high sulphur fuel will decrease due to IMO 2020.
“As of 31 December 2018, the market-to-market value of these contracts was negative NOK 85.0 million, which will be recognised as an unrealised financial loss in 2018. No financial losses or gains relating to these contracts have been realised in 2018,” it reveals.
“The market-to-market value as of 3 January 2018 was negative NOK 101.3 million.
“The derivative contracts, which are entered into with a commercial bank as a counter party, do not result in physical delivery of the oil products, but the market-to-market value of the derivatives is settled when the contracts are terminated by Vistin Pharma.
“The contracts expire at the end of 2020, but may be terminated at any time by the company.”
As part of the agreement for the derivative contracts, a margin call of approximately 20% of the total contract exposure is deposited with the counter party as security.
The margin call deposited with the counter party as of 31 December 2018 was NOK 163.5 million.
The preliminary consolidated cash and cash equivalents for Vistin Pharma ASA as of 31 December 2018 was NOK 320.6 million, which included the amount deposited as margin call.
Torbjørn Kjus, Head of Energy Trading at Vistin Pharma ASA, on Wednesday (3 January) decided to resign from his position to pursue other interests.
Published: 7 January, 2019
‘The JMs have failed to discharge their duties by blindly helping the Banks mount a false case against the Defendant,’ wrote defence lawyers representing former IPP Director Dr Goh Jian Hian in court statement.
Lead prosecutor Andreas Myllerup Laursen aims for a fine and a prison sentence in the so-called Syria case scheduled to commence in Odense, Denmark on 26 October, writes the Danish publication.
In a modern re-telling of the story of David versus Goliath, local bunker barge owners/charterers successfully resisted claims brought in the Singapore courts by Phillips 66 for misdelivery of bunkers.
Bunker barge owners and operators; traders and suppliers; banks, including players in other countries, will have to re-examine respective operations, advises Helmsman Associate Director Jonathan Tan.
Vopak BL was a non-essential document with no contractual force and had no effect as a contract of carriage or as a document of title, states written Judgement issued by Singapore Court of Appeal.
Dwivedi Vivek Kumar ended his tenure as Global Head – Bitumen & Shipping & Regional Head – APAC at GP Global APAC on 10 November 2020 due to internal structuring of the GP Global Group.