Recently Acquired Stake in Hong Kong Bunkering Company Drives Up NewOcean Energy Profits

by Ship & Bunker News Team
Tuesday August 18, 2015

A larger stake in marine bunkering, alongside low oil prices, have driven up profits for Hong Kong-based NewOcean Energy Holdings Limited, the company announced in its 2015 report for the first six months of the year. 

According to the company, its oil products business has seen strong growth due to newly operational tankers, increased usage of a Chinese oil product warehouse, and the re-acquisition of the remaining 51 percent of Success Pillar Limited, which had been developing marine bunkering in Hong Kong. 

Though revenues dropped to HK 7.6 billion ($980 million) from HK 10.2 billion ($1.3 billion) in the first half of the year, net profit rose to HK 452 million ($58.3 million) from HK 398 million ($51.3 million).

"Hong Kong’s oil products business includes mainly marine bunkering, where the Group’s competitive edge in the red oil (marine diesel) market is already obvious," the company said. 

"Solid foundation for this business has been laid, and it will not be long before the Group to achieve 60 percent share of the Hong Kong marine diesel market."

In its corporate profile, the company said that it has spent the last two years laying down the groundwork for marine bunkering in the city. 

Future plans in bunkering also reportedly include setting up bunkering stations to serve China-based Anhui Conch Group's transportation fleet.

The company said it plans to construct supply stations at the cement company's Guangdong production base along river channels in the Pearl River Delta

NewOcean Energy also said that it is also considering expanding its operations to Singapore, in addition to turning its focus on becoming more competitive in the black oil (fuel for marine use) market. 

Late last year, it was reported that NewOcean Energy had re-acquired its stake in Success Pillar after the latter found itself "seriously affected"  by the collapse of OW Bunker