Asia/Pacific News
Bunker Supplier NewOcean Expects 87% Narrowing of First-Half Losses
Hong Kong-listed bunker supplier NewOcean Energy Holdings expects its first-half losses to narrow by 87% from the same period a year earlier on rising oil prices.
The company expects a net loss of HKD 170 million ($21.8 million) for the six months to June 30, it said in an exchange notice on Wednesday, compared with a HKD 1.351 billion loss in the same period a year earlier.
"In 1H2021, the Group was undergoing debt restructuring, the management had reallocated the internal resources to concentrate on energy products business and substantially contracted the trading of electronic products," the company said in the statement.
"Although the global market was still affected by the COVID-19 pandemic, the demand for energy products gradually grew back to normal and thus the overall gross profit margin derived from the energy product business in 1H2021 rose to approximately 3.40%.
"On top of that, in contrast to 1H2020 there were no further material impairment losses on trade receivables required to be made in 1H2021."
Earlier this year the company announced plans for a scaled-down presence in bunkering in response to last year's losses.
