Asia/Pacific News
Brightoil Issues Profit Warning, Breaches Loan Agreements
Brightoil Petroleum Holdings [HKG:0933] (Brightoil) today issued a profit warning, saying it expected to make a loss for the six months ending December 31, 2012 due to the depressed shipping market and a narrowing of margins on bunker fuel.
The Hong Kong listed firm also said that, based on its unaudited consolidated management accounts for the period, it had breached the interest coverage ratio covenant on one of its loan facilities.
"This default may trigger cross default provisions in other loan agreements entered into between the Group and other Lenders," it said in a statement.
Brightoil also said that failure to perform or comply with its financial covenants entitles the lender to declare the outstanding loan amount immediately due and payable and/or terminate the facility.
"The Group is in the process of applying for relevant waivers from the Lenders," it said.
It was recently revealed that for 2012 Brightoil slipped from being the second to the third largest bunker supplier by volume in Singapore, and also saw a dip in its fuel oil imports into China.
Last year the oil trader also saw seven of its executives exit the company.
In December Chairman Raymond Sit Kwong Lam said the firm was looking to expand its bunkering operations.
