Banle Group Posts $3.87 Million Loss in 2024 as Expansion Squeezes Margins

The company recorded a 600% increase in biofuel bunker sales in 2024. File Image / Pixabay

Marine fuel supplier and trading firm Banle Group reported a net loss of $3.87 million for the full year 2024, reversing a profit of $1.13 million in 2023.

The downturn comes despite a 36% jump in revenue to $592.5 million in 2024, fuelled by strong volume growth and aggressive network expansion, as per the annual report published by its parent company CBL International.

The Hong Kong-headquartered company extended its presence from 36 to over 60 ports across Asia, Europe, Africa, and Central America in 2024.

However, the costs of rapid scaling took a toll on profitability.

Operating expenses surged 56.8% to $8.7 million in 2024 from $5.55 million in 2023.

Gross profit fell 25.5% to $5.37 million, as tighter pricing and increased competition compressed margins.

The company also saw strong growth in its biofuel segment, with sales volume increasing over 600% year-on-year. Banle introduced its B24 biofuel blends in key Asian ports, part of its broader push toward sustainable marine fuels.

"We are confident in our strategy to expand our service network, maximize sales volume and explore sustainable offerings, even in these challenging times, Dr. Teck Lim Chia, Chairman and CEO of CBL International Limited, said.

"Our investments in new ports, diversified clients, and sustainable fuels are building a foundation for future growth."

Banle ended the year with $8.02 million in cash, up 8.3% from 2023, reflecting improved working capital management and increased access to funding.