Chemoil Sales Volumes Down in Q1

by Ship & Bunker News Team
Wednesday May 15, 2013

Revenue for Chemoil Energy Limited (Chemoil) fell 15 percent year-over-year to $2.9 billion in the first quarter of 2012 as retail sales volume and average sales values both fell, the supplier has said.

The company's profit for the quarter was $7.7 million, down from $8.8 million in the period last year.

"Our first quarter 2013 results were relatively good in spite of continued weak demand in the shipping sector, most notably in the Americas," said CEO Tom Reilly.

"Volumes were steady in Asia and Europe … and benefits from restructuring are taking effect.

"Our renewable business also made positive contributions; a result that underscores the importance of the diversification strategy that we have employed over the last few years."

The company reported an overall sales volume of 4.4 million metric tonnes (mt) and a retail volume of 2.5 million mt, a drop of 7.8 percent and 8.2 percent respectively.

Average sales value per mt fell to $659.6 from $725.8, while average purchase cost per mt fell to $648.6 from $713.4.

"The Company's financial position in the first quarter is at one of its strongest points, having increased shareholders equity to US$ 492 million, a further increase from year-end 2012 when we received the proceeds from the sale of Helios terminal," said CFO Fred Bendle.

Chemoil sold the terminal, on Singapore's Jurong Island to Oiltanking GmbH (Oiltanking) of Germany as part of a move toward an "asset-light" bunkering business model.

Ship & Bunker News Team
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