Madsen: DOT Acted as Tankoil's "Bank," and it Was Visible to OW Bunker Management

by Ship & Bunker News Team
Tuesday March 17, 2015

Dynamic Oil Trading (DOT) effectively acted as a bank for Tankoil Marine Services (Tankoil), according to Johnny Madsen, Partner at investment managers Dansk FI, who says this fact was visible to the management of OW Bunker based on its financial records, Maritime Denmark reports.

It is understood that during 2013 the OW Bunker group reported $6.9 million in interest income, compared to profit for the year of $11 million.

According to the report, those interest revenues came almost exclusively from Tankoil, whose debtor balance at the end of 2013 stood at $106 million.

"DOT effectively functioned as a bank for Tankoil," said Madsen.

"It's a completely different business model than the one being described in the prospectus where OW Bunker was described as a company transporting oil."

Earlier this month, Madsen said it was a disaster that DOT had not been mentioned in OW Bunker's listing prospectus, adding that he has the impression that the omission was intentional.

In the aftermath of OW Bunker's collapse, group management suggested there had been a fraud perpetrated by those at DOT who allowed large credits to build up with Tankoil, but such allegations have been denied and it is understood no charges have been brought.

Last week, DOT was said to have had another significant debtor, Petrotec Pte. Ltd. in addition to Tankoil.

Ship & Bunker News Team
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