Asia/Pacific News
Brightoil to Spend $18m Expanding its Bunker Barge Fleet
Hong Kong Listed Brightoil Petroleum (Holdings) Limited [HKG:0933] (Brightoil) today said it will spend $18 million to expand its bunker barge fleet.
In the regulatory filing, Brightoil said it will acquire two bunker barges currently under construction at Haidong Shipyard in China that are due for delivery on September 2.
Brightoil chairman Dr. Sit Kwong Lam was named as the beneficial owner of the companies selling the barges to Brightoil.
The "open market" value of the two vessels was noted to be $20 million.
The company said it intends the deal to be settled in cash and financed with a combination of bank loans and internal funds, but didn't specify if said financing was already in place.
"Having established itself as one of the leading suppliers of marine bunkers in Singapore, the Group considers that the purchase of these two bunker barges will (i) enhance the competitive strength in the bunkering business of the Group by expanding the operating fleet, (ii) bring in additional revenue to the Group through increased marine bunker sales volumes," Brightoil said.
Last year, Brightoil Petroleum, who for 2012 slipped from second to third place on the Maritime and Port Authority of Singapore (MPA)'s list of top bunker suppliers by volume at the port, in 2013 dropped into 27th place.
