UPDATE 1: Chemoil Profits Down 32% in 2013

Chemoil said its Americas business was sluggish in H1 but improved

- Update 1: Adds information on bio-fuels tax credit

Profits for global marine fuel supplier Chemoil Energy Ltd. dropped 32 percent to $101.9 million in 2013, while its revenue fell 5 percent to $13.0 billion, the company reports.

Last year the company's results were given a significant one time boost from the sale of its Singapore storage facility, while this year the company received a $60 million tax credit for bio-diesel as part of U.S. energy tax incentives.

"Full year profit before tax was US$ 41.3 million. In the fourth quarter, a favourable opinion by the US tax authorities on the appropriate tax treatment of bio-fuels excise tax credits allowed us to recognise a tax benefit of US$ 60.6 million, bringing our full year profit after tax to US$ 101.9 million," Chemoil’s CFO, Fred Bendle, explained in a statement.

"The excise tax credits result directly from our biodiesel trading activities but the tax benefits will reduce the future tax liabilities across all of our U.S. businesses."

The company's volumes sold for 2013 fell 1.9 percent to 19.9 million metric tonnes (mt), driven by a 5.3 percent decline in retail volumes to 10.9 million mt.

Average sale price fell 3.3 percent to $646.3 per mt (pmt), while average purchase cost was down 3.8 percent to $632.2 pmt.

The company reported that its lower sales volume resulted largely from "sluggish retail and cargo" sales in the Americas during the first half of the year, but that business recovered in the second half.

"This year, our profitability was driven by strong fuel operations in North America and by our global biodiesel business," said CEO Tom Reilly.

"Start-ups such as Chemoil Energy, which sells diesel to the fracking industry in the U.S. have turned profitable and have begun to contribute to our success.

"Our solid financial performance came despite losses in our marine business in Europe, where we have now restructured. In 2014 we will continue to build on the strong global businesses we have established."

The U.S. Government has not yet decided on whether the bio-diesel and other energy tax credits will be extended through 2014.

Chemoil said in May that restructuring and diversification efforts had strengthened its results.