Bunker Holding Grows Global Market Share After a Year of "Massive Growth"

Keld R. Demant, CEO, Bunker Holding Group. Image Credit: Bunker Holding Group

Bunker Holding Group today has reported what it hailed as "massive growth" in both turnover and bottom line for its 2017/18 year, a performance that has ultimately resulted in an increase for its global market share.

Despite what the company described as "a challenged bunker market," earnings before tax (EBT) for the period rose 16% to $40 million compared to $35 million in the previous year.

Revenue saw year-on-year growth of 26%, from $6,459 million to $8,153 million, which given the change in oil and bunker price over the period translated in sales volumes that were "slightly up."

Indeed, Ship & Bunker data indicates bunker prices at major ports also rose around 26% between the two periods, and around 24% overall (the average IFO380 price for Ship & Bunker's Global Top 20 Index in the 12 months to March 2017 was $275/mt vs $347/mt in the 12 months to March 2018; The Global Average IFO380 price in the 12 months to March 2017 was $300/mt vs $372/mt for the 12 months to March 2018).

This growth in bunker volumes, albeit small, will no doubt be viewed as a major victory for Bunker Holding, especially given a number of its high profile peers have reported their volumes are down.

And given the market overall is also contracting, as Bunker Holding notes, the indication is that their global market share has grown.

Average headcount for the year was virtually unchanged at 631, compared to 630 in 2017/18.

Very Satisfactory

"This year's result is very satisfactory and fully in accordance with our expectations not least considering the challenging market we operate in. Once again, we have been able to grow in a retracting market, manage risk with great confidence and sustain a healthy business in a period of aggressive competition. Bunker Holding Group is in better shape than ever before," said Keld R. Demant, CEO, Bunker Holding Group.

"While other bunker companies have been forced to resort to not satisfying results, Bunker Holding Group has been able to attain a healthy and sustainable business, harvesting on the capital structure and size we possess. We constantly gaze towards future business opportunities and are ready for any changes the industry may undergo. Our ambition is to grow steadily - driven by opportunity, not necessity."

The result comes despite other headwinds too - not least of which being a weak US dollar and the launch of a number of new business ventures, including Bunker One.

Bunker Holding said it also made "massive investments" in strategic IT platforms.

Looking ahead, Bunker Holding said it welcomes the inevitable industry change that will come with the upcoming "IMO 2020" global 0.50% sulfur cap on marine fuel, which will come into force from January 1, 2020.

"Bunker Holding Group expects to improve its result for the financial year 2018/19 seeing some slightly improved market conditions in the horizon for the entire shipping industry," the Group concluded.