USTC Publishes More Details on Losses From Bunker Holding Subsidiary's Shutdown

by Ship & Bunker News Team
Monday August 19, 2024

USTC, the parent company of Bunker Holding, has provided more details on the shutdown of a cargo trading unit that brought the marine fuels group millions of dollars of losses last year.

As Ship & Bunker reported in June, Bunker Holding 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'.

Parent company USTC provided more details on the shutting-down of the unit in its annual sustainability report last week.

"The conclusion came in the wake of a market in Africa flooded by Russian crude oil and sanctions enforcement measures, which has made it increasingly difficult for the company to compete on the market," USTC said in the report.

"Adding to this, the growing political instability in Africa has been a decisive factor in the outcome, which has also come with significant costs.

"Despite the very unfortunate turn of events, Bunker Holding Group have managed to come out on the other side with a very decent financial result.

"This can be attributed to the strength of existing operations, a robust business model, and support from USTC, which has rendered it possible for Bunker Holding Group to invest in the future, so that we have the preparedness to tackle future disruptions."

Ship & Bunker News Team
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