INTERVIEW: Monjasa Expects Resilient Profits in 2025 Despite Market Drop

Rasmus Knudsen is CFO of Monjasa. Image Credit: Monjasa

Global marine fuel supplier and trading firm Monjasa is sticking to a relatively bullish profit outlook for this year despite the current turmoil in the markets.

This week the company reported net profit of $65 million in 2024, down from $109 million in 2023 but still the third-best result in the company's history.

In its annual report, dated April 4, the firm said it expects net profit of $30-60 million this year, which would be the fourth-highest result in its history, albeit still on a downward path.

The company remains confident in that projection despite a slump in oil markets seen in the week after the report's preparation in the wake of global tensions over tariff rates, although uncertainty over the market has increased, Rasmus Knudsen, CFO of Monjasa, said in an interview with Ship & Bunker.

2024's profits were the third-highest in Monjasa's history. Image Credit: Ship & Bunker / Data Credit: Monjasa

"It still reflects our expectation for the full year," Knudsen said.

"But the latest fluctuations in the market have created less visibility, so the uncertainties have increased also when it comes to our financial projections."

The company will continue to play to its strengths to ride out the current market turmoil, Knudsen said.

"Our focus is to continue doing what we do well," he said.

"We will continue providing marine fuels trading and marine fuels logistics to our customers; we'll continue focusing on developing our business where we can make a difference for our customers, like we have lately done by adding a new office location in Japan and adding a physical operation in the US Gulf.

"Our financial foundation allows us to stick to this course, and it gives us a great position to navigate the uncertainties that we will face ahead."

Global Decline in Volumes

The state of the market remains uncertain, but a decline in global bunker volumes looks to be a distinct possibility this year, Knudsen said.

"Many things are changing by the day - by the hour - but it might well be that what is happening right now will have a negative impact on global bunker volumes this year," he said.

Monjasa's approach will be to remain flexible about where to deploy its assets to adapt to any change in tradeflows and geographical distribution of bunker demand.

"As we don't know exactly how this will pan out, it's too early for us to have an opinion on where the impact will be, and how it's going to impact the market," Knudsen said.

"What we focus on right now is to continue developing the offerings we bring to the market, and focusing on ensuring that we remain flexible and agile so that we can position ourselves in the best possible way for the changes in demand and regulations."

Alternative Fuels

Monjasa saw a total of 6.8 million mt of bunker sales last year, up from 6.5 million mt in 2023.

Less than 1% of its sales total last year was in alternative marine fuels, but the company expects that to increase in the coming years if regulation is brought in to support shipping's energy transition.

"We are ready to deliver when demand will be there," Knudsen said.

"We have established supply chains to increase the alternative fuels part of our business.

"But in order for demand to increase, we either need regulatory requirements to kick in, or we need the alternative fuels to become competitively priced.

"We expect it to increase."