Commodities trader Ennero has new bunker trading arm (file image/Ennero)
A commodity trading company has set up a new bunker trading arm with the aim of making its presence felt in the Middle East Gulf and African bunker markets.
Dubai-based Ennero, which started up earlier this year, has a subisidiary in London and says that becoming a regional player is top of its 'to do' list.
"The Middle East Gulf and Africa are our focus points and we will look to identify other markets of interest in the future," Ennero's director for oil trading and strategy, Philip Lansdowne, told Ship & Bunker.
London-based Lansdowne said Ennero's service offering runs across three revenue streams: maritime fuels and lubricants supply; petroleum products, trading parcels of 5,000-10,000 metric tonnes; and downstream distribution to the industrial sector, typically across landlocked regions in Africa.
Indeed, the company's strategy is to focus on the Middle East and Gulf Co-operation Council markets while making inroads into various African markets specific to downstream distribution and petroleum products' trading.
A feature of the new company's trading approach is to keep a firm handle on counterparty risk.
"We are diligent in our approach to counterparty risk. We have set strict credit limits for each of our counterparties."
Given that the bunker market is under pressure to consolidate and margins are tight, what does Ennero intend to bring to the table?
The company has been put together with current market conditions and challenges in mind, explains Lansdowne.
Philip Lansdowne, Ennero director
Preference for longterm business and delivering more than just a price and credit terms service
"We're a very 2017 company, bringing a modern, flexible and innovative approach to trading and supply."
The preference is to build up longterm business and deliver more than just a price and credit terms service.
The 'more than' that clients can expect includes price risk management and advisory services.
Looking ahead, the omens are encouraging, says Lansdowne, citing a recent incident in the United Arab Emirates (UAE).
"We recently arrested a 2011-built, Singaporean-flagged chemical tanker in Khor Fakkan Anchorage which has been trading actively," he said. "After four months of payment delays, we were able to arrest and recover our payment thanks to the sound and efficient judicial system in the UAE. All this was done within a 24-hour period and we thank the local authorities again for their support."
Growth will come by building credibility, trust and performance with clients, suppliers and with our investors, Lansdowne added.
In addition to Lansdowne, Jawad Nizar and Karim Al Alami head up the Dubai operation.