EMEA News
OW Bunker Leaning Toward New Downgrade
OW Bunker is once again looking at cutting its full-year forecast for 2014, ShippingWatch reports.
"We believe that there is a high probability of a new downgrade before the end of the year," said Carsten Dehn, a portfolio manager at Swedish private bank Skandinaviska Enskilda Banken (SEB).
"I believe that the underlying profits are under so much pressure that the company needs to make another adjustment."
OW bases its guidance on its gross profits per ton generated, which has faced significant difficulties due to the continued plunging price of oil.
Earlier this month the company announced that it had lowered its 2014 guidance as profit is expected to come in 20 percent lower than the year before.
"If the yield generated by OW Bunker in September continues during the next three months, OW Bunker's guidance will not be met," Dehn said.
OW Bunker CEO Jim Pedersen said after the forecast cut that there was uncertainty around short-term developments, but that the company had been making changes to minimise the affect of declining oil prices.
Pedersen also fended off analyst worries, adding that recent difficulties wouldn't affect OW's business model.
"One of the conclusions is that we probably need to work on insuring ourselves earlier," he said.
"We're not worried about our company, but I do understand the concern among our investors."
Last week, the company said that it expected a $22 million loss in the third quarter.
