Monjasa Addresses Rumours Over its Financing

Group CFO Kenneth Henriks says Monjasa "is in a very good financial position."

Despite a number of rumours to the contrary circulating the market in recent days, Monjasa is not facing any financing difficulties, but is currently evaluating a future structure to accommodate its expansion into oil trading, the bunker player has told Ship & Bunker.

The rumours appear to have stemmed from local Danish media reports that Monjasa says misinterpreted comments made in its latest Annual Report related to future financing, to instead mean it was struggling to fund its business.

Group CFO Kenneth Henriks told Ship & Bunker that in fact Monjasa's current business models call for a financing structure that is more suitable for its current business, coming on the back of its expansion into oil trading.

"In our recently released Annual Report 2015, the Monjasa Group managed a net result of 24 million USD compared to 22 million USD the previous year. We presented an equity ratio of 40 percent and total equity of +140 million USD. So, I can safely say that Monjasa is in a very good financial position and we expect no difficulties whatsoever in reaching new financing models fitting our evolving business areas," he said.

"Monjasa has grown during the past couple of years, and we have gone from being a regional player to becoming a global actor offering still more services within shipping, bunker, and other oil services in several markets. Therefore, our financing model is crucial for our efficiency and service, and it is therefore evaluated continuously.

"During the past year, we have started trading larger parcels of oil products for third parties as well as for our own operation. In this connection, trade finance, is more efficient option than our current borrowing base financing model."

Henriks also stressed that all major players look refinance themselves at regular intervals, and in this respect Monjasa is no exception.

"With our robust solvency and extended tangible net worth, our position with regard to continuous and future financing is stronger than ever. That is the reason why we regularly examine the Monjasa Group's financing packages, and this year is thus no exception," he said.

"In financial terms, we will still use borrowing base financing and are working towards an expanded financing package where a bigger part of the financing must be based on trade finance. This is increasingly relevant for us."

This is not the first time this year a well known bunker player has had to address rumours over its financial position - a matter of increased sensitivity following the 2014 collapse of former bunker giant OW Bunker.

In January Bunker Holding was forced to address reports it was suffering from financial problems after it made a round of job cuts.