KPI OceanConnect: Bunker Volumes Up 9% to 12m mt, Pre-Tax Profits Drop 59%

CEO Anders Grønborg said the firm was committed to continued work on ESG measures. Image Credit: KPI OceanConnect

Global hybrid marine fuels firm KPI OceanConnect saw a 59% drop in its pre-tax earnings in the last financial year, despite a jump in volumes.

The firm saw pre-tax earnings of $20 million in the year to April 30, it said in an emailed statement on Tuesday, down from $49 million the previous year.

Revenues dropped to $5.6 billion from $5.87 billion the previous year.

Volumes rose 9% to 12 million mt. That left average pre-tax profit per tonne at about $1.67/mt, down from about $4.45/mt the previous year.

The firm had a record performance in the 2022/23 financial year. Image Credit: Ship & Bunker / Data Credit: KPI OceanConnect

"The trading performance for the year was in line with management expectations in light of the prevailing market conditions," the company said in the statement.

"During the financial year 2023/2024, focus on international trade compliance continued in response to geopolitical events and the consequential impact this has had on global oil market fundamentals.

"Shipping companies have had to deploy more vessels and adapt trade routes.

With that, marine fuel demand has been rising in the traditional bunker hubs and elsewhere along the route via South Africa."

CEO Anders Grønborg said the firm was committed to continued work on ESG measures.

"Our robust performance and nomination by Thetius as one of the most innovative maritime companies are testament to our continued commitment to partnerships and environmental, social and governance measures," Grønborg said.

"We strive to deliver tailored, value-adding services to our clients and of course have a keen focus on supporting them through the energy transition and its complexities.

"We firmly believe in the value of collaboration, transparency, and digitalization to drive innovation and future-proofing operations."

Last year's run of the firm's 50 for 50 campaign, which involved the company donating $50 to charity for every deal made by any of its offices in November and December 2023, raised $123,000, the company said, up from $110,000 the previous year.