Asia/Pacific News
NewOcean Energy Warns of $174 Million Q2 Loss
Hong Kong-based energy company has issued a profit warning for its second-quarter results before their release next week, saying it expects to post a loss after a weak performance from its bunkering business in Hong Kong.
The company expects to post a second-quarter loss of HK$1.35 billion ($174 million), down from a profit of HK$301 million in the same period a year earlier. The results are due to be released on Monday.
In July the company said its profit margin from bunkering had been 'substantially reduced' after this year's slump in oil prices hit the bunker market in Hong Kong.
Total bunker volumes sold in Hong Kong were down by about 30% in the second quarter from a year earlier, local traders have told Ship & Bunker.
The Hong Kong market is experiencing further problems in the third quarter, with COVID-19 lockdown measures making bunker-only calls there unviable because of delays.
NewOcean's total bunker sales surged by 66% last year to 4.464 million mt.
