Update 1: OW Bunker Hit By $125 million Fraud at Singapore Subsidiary, $150 million Mark to Market Loss

Risk Management and EVP Jane Dahl Christensen was dismissed as a consequence of the risk management loss.

• Update 1 - On November 6 OW Bunker says it now expects to be Insolvent, and has commenced in-court restructuring. [Read in Full]

OW Bunker today said it has been made aware of fraudulent activity committed by senior employees at its Singapore-based subsidiary Dynamic Oil Trading (DOT).

The Denmark-based bunker company said the matter is under investigation, but preliminary findings put the potential loss at around USD $125 million.

ShippingWatch reported that the fraud had been discovered on Tuesday, and two unnamed individuals were reportedly questioned over the matter.

Separately, OW Bunker said a review of its risk management contracts has revealed a "significant risk management loss" in addition to the USD $24.5 million loss announced last month.

"As of today, the mark to market loss is around USD 150 million," OW Bunker said in a statement.

"In order to reduce risk management exposure to an absolute minimum level, risk
management contracts are currently being unwound.

"Head of Risk Management and EVP Jane Dahl Christensen has as a consequence of the risk management loss been dismissed with immediate effect."

Earlier today, Ship & Bunker reported that NASDAQ OMX Copenhagen announced that trade in OW Bunker's shares had been placed on matching halt pending an announcement from the Denmark-based bunker company.

OW Bunker said today's events would impact its operations and credit facilities, and it is currently in discussions with the syndicate banks.

A further statement will be made as soon as possible, it added.

OW Bunker estimates its global market share to be approximately 7 percent.