Asia/Pacific News
Singapore Bunker Trader Reduces Business with Higher-Risk Customers
Singapore-based marine fuel trader Sinfeng Marine Services Pte. Ltd. (Sinfeng), a subsidiary of COSCO International Holdings Ltd. [HKG:0517] (Cosco International), adjusted its strategy to reduce business with higher-risk customers in 2013, the company reports.
Sinfeng's sales volume of marine fuel products dropped 3 percent to 1,162,465 tonnes.
Marine fuel prices also fell from their 2012 levels, and, combined with the decline in volumes, this reduced the firm's revenue from trading and supply of marine fuel and other products by 9 percent to HK$5.7 billion ($734 million).
Over the year, Sinfeng maintained stable cooperation with "reputable existing customers" and sought new relationships with leading shipping and trading companies.
It also began a business supplying fuels to Chinese naval vessels, which Cosco International said could drive future profit growth.
At the same time, Sinfeng "squeezed the supply volume to bulkers bearing higher risks," which drove down its average gross profit margin.
Cosco International also reports that its profits from Hong Kong bunker supplier and fuel trader Double Rich, in which Cosco International owns an 18 percent share, fell 1 percent to HK$13.7 million ($1.8 million).
For the first half of 2013, Cosco International reported that Sinfeng's sales of marine fuel products rose but falling prices pushed its overall revenues down.
