Singapore-listed international bunker supplier Chemoil Energy made a Q3 profit after tax of US$10.4m with an overall net profit of $34.7 million for the period of January to September 2008. This was achieved on the back of revenue growth of 70% compared with last year, and a significant increase in gross contribution per tonne of $11.10 against US$3.10 in Q3 2007.
The company says: “Revenue was largely driven by the higher average sales value of marine fuel compared with 3Q2007. In the 3rd quarter, gross contribution per tonne was boosted by increased sales volumes of bunker deliveries which generally has higher margins and consistent customer base. In addition, despite intense price volatility, the company’s hedging strategy protected the underlying physical inventory.”
Company chairman and CEO, Mike Bandy, said: “We focused on bunker deliveries and as such those volumes increased 21% for the 3rd quarter. Overall, Chemoil’s business model has continued to perform on course and has generated positive results in the past two challenging and volatile quarters: one quarter with a rising oil market and followed by one with a declining oil market. In the first nine months of 2008, profits more than doubled compared with last year. Our performance is a testament to Chemoil’s unwavering focus on extracting high margins and efficiencies from its fuels business by controlling its global supply chain.”
He added: “Amid the current market conditions, our flexibility enables us to adapt our hedging strategies plus allowing us to focus on areas where demand and margins are better. Our diverse sourcing capabilities combined with Chemoil’s investments in controlling the physical aspects of the supply chain, have positioned us to better manage these turbulent market conditions.”
The company says: “Revenue was largely driven by the higher average sales value of marine fuel compared with 3Q2007. In the 3rd quarter, gross contribution per tonne was boosted by increased sales volumes of bunker deliveries which generally has higher margins and consistent customer base. In addition, despite intense price volatility, the company’s hedging strategy protected the underlying physical inventory.”
Company chairman and CEO, Mike Bandy, said: “We focused on bunker deliveries and as such those volumes increased 21% for the 3rd quarter. Overall, Chemoil’s business model has continued to perform on course and has generated positive results in the past two challenging and volatile quarters: one quarter with a rising oil market and followed by one with a declining oil market. In the first nine months of 2008, profits more than doubled compared with last year. Our performance is a testament to Chemoil’s unwavering focus on extracting high margins and efficiencies from its fuels business by controlling its global supply chain.”
He added: “Amid the current market conditions, our flexibility enables us to adapt our hedging strategies plus allowing us to focus on areas where demand and margins are better. Our diverse sourcing capabilities combined with Chemoil’s investments in controlling the physical aspects of the supply chain, have positioned us to better manage these turbulent market conditions.”