Asia/Pacific News
Brightoil Bunker Sales Volume Down 26% in H2 2013
Brightoil Petroleum (Holdings) Ltd. [HKG:0933] (Brightoil) reports its bunker sales volume dropped 26 percent year-over-year in the second half of 2013.
Despite that drop, Brightoil's revenues grew 71 percent to HK$40.3 billion ($5.2 billion), and the company's bottom line went from a loss of HK$871.2 million ($112.3 million) to a profit of HK544.9 million ($70.3 million).
The company said international market trends pushed it to shift the approach of its International Trading and Bunkering (ITB) division.
"For the six months ended 31 December 2013, the ITB business unit focused its efforts mainly on building its crude trading relationships across Asia and its trading volumes into China/North Asia, Brightoil said.
The company anticipates increases in U.S. crude oil production and the lifting of sanctions on Iran may add to the supply of oil on the market in 2014.
"These crude flows will add more oil to an already crowded supply market," it said.
"The Group expects the shipping industry to continue to work through its difficulties for most of 2014, leading to yet another year of relative weak bunker demand.
"Recovery in shipping industry could come by end of 2014 or in 2015
The company's revenues from the provision of bunkering services dropped to HK$9.9 billion ($1.3 billion) for H2 2013, from HK$14.2 billion ($1.8 billion) during the same period of 2012, while the income coming in from sales of petroleum products jumped to HK$29.8 billion ($3.8 billion) from HK$8.9 billion ($1.1 billion).
Brightoil recently reached a deal with the U.S. oil firm Anadarko Petroleum to buy the company's Chinese assets for $1.08 billion, increasing its investment in upstream resources.
