Bunker Holding Reports Lowest Pre-Tax Earnings Since 2017/18

Margins have been under pressure 'across the board', according to CEO Keld Demant. Image Credit: Bunker Holding

Marine fuels group Bunker Holding has reported its lowest pre-tax earnings since the 2017/18 financial year.

The firm saw pre-tax profit from continuing operations of $46 million in the 2024/25 financial year, it said in an emailed statement on Tuesday, down by 63.8% from a year earlier.

"In many ways, it has been a very demanding year," CEO Keld Demant said in the statement.

"The market conditions and competition have been tough, and we have seen margins under pressure across the board.

"Therefore, I am pleased that we have managed to pull through what has been a trying year while maintaining our volumes and our strong customer relations."

Pre-tax profit from continuing operations has dropped to the lowest since 2017/18. Image Credit: Ship & Bunker

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Further Write-Downs Related to Africa Cargo Business

Bunker Holding had lost about $125 million in the 2023/24 financial year from its onshore cargo trading unit PSTV Cargo.

The operation focused on non-maritime onshore customers, and the company had previously said the loss came from 'unfavourable market conditions and political instability'.

Investigations into those losses have revealed the need for further write-downs, Bunker Holding said on Tuesday.

"Contrary to own expectations, further investigation led to additional write-downs on assets originating from the business area closed last year," the company said.

"In total, write-downs from discontinued operations amounted to USD 36 million."

Future Outlook

The company expects conditions to remain unfavourable this year, citing expectations of 'continued strong market competition as well as macroeconomic uncertainty'.

"I am confident that the operations we continue to invest in remain strong, and that we are heading into the future with purpose and a clear direction of where value can be created," Demant said.