Chemoil Posts Pre-Tax Profits of $67.7m

Chemoil is one of the largest independent physical suppliers of marine fuel in the world

Chemoil Energy Limited (Chemoil) has posted pre-tax profits of $67.7 million as well as a record volumes of 22.5 million tonnes of product for 2011.

The profit represents a $79 million rise on 2010, when they reported a loss of $9.5 million.

The company's key margin indicator, gross contribution per metric ton, was US$ 10.4 per metric ton for the full year 2011, up from US$ 4.1 for FY2010.

The news comes just a week after Glencore International Plc acquired a further 484.73 million shares in the Singapore listed company, raising its stake from 51.54 percent to 89.04 percent. 

Mats Berglund, Chemoil’s COO and CFO said: "Stable results from our marine terminals, improved profitability from all our marine fuel supply regions and positive results from our new businesses, OceanConnect Marine and renewables trading, all contributed to the improved results."

According to Chemoil’s CEO, Tom Reilly, “Chemoil’s strong performance in 2011 stems from positive contributions from our core business functions and the company’s diversification strategy with new businesses accounting for a substantial part of the volume growth this past year.”

That diversification and new business includes the formation of the Chemoil Aviation division to enter into the aviation fuel business with a focus on supplying aviation fuel to secondary commercial passenger airlines, cargo and charter operators.

Chemoil also moved into the biofuels sector with the March 2011 introduction of the Renewables, Chemicals and Biofuels Trading business. 

Further expansion can be expected as the company has joined with GPSChemoil to build a 675,000m³ storage facility at the Fujairah storage terminal which will be one of the biggest distillate and bunker storage terminals in the Middle East.