World Bunkering > News > Winter 2010 > Global round-up

AFRICA

South Africa opening for Global Vision

Global Vision Bunkers is opening an office in South Africa as part of the group’s expansion throughout the African continent. Shanaaz Bennett will be heading up Global Vision Bunkers (Africa), a black economically empowered company situated in South Africa. Ms Bennett has worked as a supplier for Shell and most recently has been managing director of Wilhelmsen Premier Marine Fuels in South Africa. She has also worked as an international trader for two major worldwide trading groups and is the IBIA chairman for Southern Africa.

Global says of its new South African head: “She is an expert in all things Southern Africa and is responsible for developing further the Group’s considerable activities throughout Africa.” Global is one of few international licensed resellers of Sonangol product (state supplier of Angola) and is active throughout the continent both in port and offshore. The new office in South Africa will give Global greater access to the fast developing oil activities throughout the continent.

ASIA

Chemoil turns to derivatives for growth

Chemoil Energy is to offer its customers hedging services from next month, according to chairman and chief executive Michael Bandy. Speaking in an interview with Reuters, Bandy said that Chemoil sees the derivatives market as a major growth area, and expects its derivatives volume to match its physical trades within three to five years. Over the first 10 months of 2010, Chemoil has hired 30 risk, credit and marketing staff primarily for the derivatives business. Chemoil currently hedges its own physical inventory, and will be expanding these services to its customers. Glencore will be the preferred counterparty for these derivatives trades.

“It’s a very lucrative market. The margins are at least as good or better than the physical market,” Bandy said. “The start-up will be slow but over the years we can expect substantial growth.” Bandy also announced that Chemoil plans to split the chairman and ceo roles, and is looking for a new chief executive. “It was always in our sights to split the roles. We have to find young talented individuals who can potentially be ceo. That is my number one key priority,” he said.

‘Modest’ profit for Yujin

Its four bunker tankers helped Singapore-based Yujin International achieve a ’modest’ profit before taxation of $452,000 for the six months ended 30 June, down from $671,000 in the first half of last year. The company says actions taken by its management and the board have helped to return a modest profit despite the continuing difficult trading environment.

A statement says: “Yujin’s bunker tankers continued to perform well. These four tankers are on term charters until Q1 and Q2 of 2011. The actions taken by management to contain costs have resulted in a slight increase in operating profits by $15,000 to $1.46 million for the first half of 2010. During May and June 2010, three of the loans taken to purchase these ships were repaid in full according to their repayment schedules. A fourth loan was repaid in July 2010.”

The company was incorporated in 2004 with the main intention of owning and operating small range tankers in Asia Pacific, employed on both term and spot charter contracts, predominantly to companies providing bunkering services in the Port of Singapore and the transportation of liquid cargo in Asia Pacific. The company had until last year also engaged in bunker trading but stopped that in the second half on 2009, describing it as incidental to its core activities and generating only insignificant margins. Owning and operating bunker tankers on term charters remains, however, a core activity.

The company says: “Shipping activities in the second half of 2010 are expected to be at the same level as the first half. Continued cost savings programs may, however, result in a slight improvement in earnings in the second half.”

MIDDLE EAST

GPSChemoil says $50 million financing for construction of phase four of its storage terminal at Fujairah is now in place. A consortium of banks in Abu Dhabi, Dubai and Singapore are to lend the money to the joint venture company between Gulf Petrol Supplies LLC, a subsidiary of the Fujairah National Group, and international bunker supplier Chemoil. The multi-currency loan was structured through a combination of Islamic and conventional loan tranches, with HSBC Bank Middle East Limited acting as the lead arranger.

The storage terminal will increase capacity in Fujairah from its existing 95,000 cu m to approximately 675,000 cu m. Phase four of the facility is expected to cost $130 million when completed in 2012. It will be one of the largest bunker terminals in the Middle East and will also be Chemoil’s largest storage facility in its global footprint, exceeding the current 482,000 cu m storage capacity at its flagship Helios Terminal in Singapore.

Managing director of Chemoil Asia & Global Logistics, and GPSChemoil director, Sanjay Anand, said: “The GPSChemoil terminal, which is part of our extensive global supply infrastructure, will substantially increase our strategic presence in the Middle East. It will ensure our shipping customers highly reliable supply, speedy service and competitive pricing.”

He added: “The Fujairah facility will also significantly expand our worldwide fuel terminal business, helping to provide stable recurrent income amid current market volatility.” Chemoil says that the construction of the terminal is part of Chemoil’s strategy to expand its global integrated marine fuel supply chain, further developing capabilities and services, enabling customers to benefit from Chemoil’s position as one of the largest physical marine fuel suppliers.

EUROPE

Aegean volumes continue to grow

Aegean Marine Petroleum saw its sales volumes soar to 2.87 million tonnes in the third quarter of 2010 – an increase of 76% over the same figure last year.

Despite this strong growth, net income for the period was $4.6 million, down from $14 million for the same period in 2009. President Nikolas Tavlarios said that “Our results for the quarter reflect a change in the competitive landscape across our geographical portfolio, particularly in our two largest markets, which adversely affected gross spread. The industry experienced an increase in the supply of marine fuel together with a change in buying patterns by shipowners, who used increased downtime to fill their marine fuel requirements through smaller purchases in a higher number of ports. Additionally, our performance for the quarter was impacted by one-time restructuring charges for our Vancouver market as well as unrealized foreign exchange loss related to our Verbeke Bunkering subsidiary.”

Aegean has now completed the acquisition of the Shell Las Palmas terminal in the Canary Islands, expanding Aegean’s global network to 16 markets covering more than 40 ports. “Importantly, the terminal includes dedicated land storage facilities that broaden our new onshore storage facilities under development in Jamaica, Morocco and the UAE,” Tavlarios said.

IBIA news

BIMCO and IBIA have launched a new bunkering guide designed primarily for use by ships’ crew. BIMCO Asia Liaison Officer Thomas Timlen, and IBIA Chief Executive Ian Adams released the BIMCO and IBIA Bunkering Guide on October 27 to delegates in Singapore attending the 16th Singapore International Bunkering Conference. Ian Adams explained: “In today’s market, the bunkering of ships is an intensive, highly regulated and quality-based operation which demands ships’ crew to be highly focused on quality assurance and environmental risk. This guide will help those involved in the bunkering process to act in compliance with industry regulations and best practice.”

BIMCO and IBIA first visited the idea of a guide in 2009, when they identified a gap in available resources to address best practice and industry compliance. The BIMCO and IBIA Bunkering Guide is an accumulation of BIMCO’s and IBIA’s combined experience, industry standing, and status as Non-Governmental Organisations at IMO. Speaking at the launch of the guide, Thomas Timlen said: “We are delighted that we have put together a comprehensive reference for all ships’ personnel involved in bunkering. We hope that making this guide available to the industry will not only benefit onboard crew but will also provide shore staff with access to information which could prove helpful in some shoreside operations.”