Asia/Pacific News
Brightoil Posts Loss, Bunker Services Revenue Drops Over 50%
Brightoil Petroleum (Holdings) Limited [HKG:0933] (Brightoil) reports that it lost HK$721.7 million ($93.1 million) in fiscal year 2013, compared with a HK$305.7 million ($39.4 million) profit the previous year, due largely to a drop in the fair market value of its derivative instruments.
The derivatives dropped in value by HK$709 million ($91.4 million) compared with a gain of HK$1.1 billion ($141.9 million) in FY 2012.
The company's revenues fell 21 percent to HK$55.4 billion ($7.1 billion) compared with FY2012, with money from the provision of marine bunkering services falling by more than 50 percent to HK22.8 billion ($2.9 billion) while sales of petroleum products rose 45 percent to HK31.6 billion ($4.1 billion).
Revenues from the Singapore market fell particularly sharply, from HK51.3 billion ($6.6 billion) to HK$26.0 billion ($3.4 billion).
Brightoil said its international trading, bunkering, and marine transportation businesses "faced an extremely challenging market due to low market demand and weaker net margin."
"During the period under review, a robust global economic recovery remained out of reach," the company said.
Brightoil said it made "significant progress" in its upstream gas business, with its Tuzi gas field in northwest China starting production in the second half of 2013, and that the construction of oil storage facility in Zhoushan, China is moving forward smoothly with operations scheduled to begin in the first half of 2015.
Brightoil said last year that it was increasing its focus on upstream gas and on its Chinese business in the face of a difficult bunkering market.
