Chemoil "On Target" as they Announce Profit for Q1 2012

Chemoil says Q1 results were “positive and on target"

Global marine fuel supplier Chemoil Energy Limited (Chemoil) has announced a 2012 first quarter profit of $8.8 million from revenues of $3.5 billion; an increase of 36% compared to the same period in 2011.

Volumes in the fifth consecutive quarter of profitability for the Singapore Exchange (SGX) listed firm were also up at 4.8 million metric tonnes, compared to 4.6 million metric tonnes in Q1 2011.

The company financials also said that higher oil prices had pushed up the average sales value per metric tonne (pmt) 31% from $552 pmt in Q1 2011 to $726 pmt in Q1 2012, with the corresponding increase in purchase costs going up 33% from $535 pmt to $713 pmt respectively.

But the Q1 results represent a 62% drop in profit attributable to equity holders of the Company for the same period in 2011, when it posted at-the-time best quarter results since 2006 of $23.2 million.

Gross contribution per metric tonne, the company’s key margin indicator, was also down from $14.9 in Q1 2011 to $8.9 per metric tonne during Q1 2012.

Despite the slump in performance, CEO Tom Reilly said the results were “positive and on target", and "the growth prospects for 2012 and beyond are promising."

"We continue to strengthen our marine fuels organization and to exit non-core activities," he added.

In the press release, Mr Reilly acknowledged profits had been adversely impacted by $1.8 million in restructuring costs associated with non-core legacy assets and said their objective was to complete the restructuring by the end of 2012.