World News
Brightoil Plans to Almost Double its Fuel Oil Purchases
Brightoil Petroleum (Holdings) Limited [HKG:0933] (Brightoil) plans to nearly double its spending on fuel oil and related products between now and 2016 as it seeks to expand its bunkering business, the company said in a financial filing.
A new oil purchase agreement with Shenzhen Brightoil Group calls for the existing annual cap of $4.97 billion for the year ending June 30, 2013, to fall to $4.8 billion in 2014 but then rise to $6.4 billion in 2015 and $9.7 billion in 2016.
"In arriving at each of the annual caps for the three years ending 30 June 2016, the
Directors have taken into account: (a) the volume of the International Trading and
Bunkering Business of the Group achieved in the past; (b) the potential market size based on the expected level of international trading activities and the throughput at the various ports;
and (c) the plan of the Group to extend its coverage to other ports globally," the company said.
Brightoil expects its purchases of crude oil from Shenzhen Brightoil group to hit 1.4 million metric tonnes (mt) in 2014, 1.9 million mt in 2015, and 2.8 million in 2016, while its volume of fuel oil bought from the company will be 5.6 million mt, 7.6 million mt, and 11.4 million mt, respectively for each year.
The plan is contingent on shareholder approval.
Brightoil announced in December that it was planning to expand its bunkering business in China and elsewhere while also diversifying into crude oil trading.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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