World News
Brightoil Issues Profit Warning, Says Debts Are Around USD $1.9 Billion
Brightoil Petroleum (Holdings) Limited today issued a profit warning for the six months ended December 31, 2018 along with a various updates on its troubled financial position.
In terms of the overall picture, the Hong Kong-headquartered firm said the previously announced creditor claims of USD $250 million are part of total aggregate debts of approximately USD $1.9 billion.
While it continues to look for external financing, Brightoil says key financiers have "responded positively" to efforts aimed at restructuring its existing financial obligations.
Another positive for the firm is the withdrawal of a winding up petition against its Hong Kong-listed entity has been granted by the Court.
Among the less favourable consequences of its current predicament, Brightoil says volumes for its International Trading and Bunkering Unit have been "drastically" reduced due in part to financing banks tightening the operation's credit.
Operations of five VLCCs and its entire six-strong fleet of bunker barges in Singapore remain suspended due to arrests, and Brightoil says it is continuing to seek solutions with the related creditors.
With a resulting reduction in transactions, plus depressed freight rates for its shipping business, Brightoil says for the six months ended December 31, 2018 it is facing a consolidated loss of approximately HKD452 million ($57.6 million).
Despite its woes, Brightoil recently ranked as the 28th largest bunker supplier in Singapore for 2018, having been placed 17th in the previous year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 565.50 | 4.50 | 678.50 | 4.50 |
| Rotterdam | 512.00 | 3.50 | 676.00 | 9.00 |
| Houston | 552.00 | 3.00 | 682.00 | 4.00 |
| Fujairah | 555.50 | 7.50 | 753.00 | 1.50 |
| Global 20 Ports Average | 583.50 | 4.00 | 762.50 | 2.50 |
| Global 4 Ports Average | 546.50 | 4.50 | 697.50 | 2.50 |
| Global Average Bunker Price | 632.50 | 2.00 | 811.00 | 1.50 |
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