Chemoil Increased Profits for Q1

Tuesday, May 19, 2009

SGX Mainboard-listed Chemoil (SGX-ST: CHEL.SI) today that its profit after tax and minority interests for the first quarter of 2009 was $8.8m, up from $2.3m in the first quarter of 2008, or an increase of 283%.

Amid the global economic slowdown, ship owners have increasingly turned to direct physical suppliers, a factor that has enabled the company to maintain profitability and increase our retail volumes by 16% to 2.17 million metric tons in 1Q2009. A decline of 23% in Chemoil’s total sales volumes in 1Q2009 to 3.76 million metric tons from 4.88 million metric tons in 1Q2008 is attributed to lower cargo and ex-wharf volumes, which was driven by prevailing market conditions.

Gross contribution per metric ton (GCMT) at $8.74 per metric ton in 1Q2009 was higher than 4Q2008 of $8.60 per metric ton, illustrating the company’s earnings performance sustainability across sequential quarters. GCMT increased significantly by 308% against GCMT of $2.14 in 1Q2008, demonstrating Chemoil's flexibility in adjusting its sales mix to concentrate on profitable segments when changing market conditions warrant it.

Chemoil’s Chairman and CEO, Mr Mike Bandy said “Chemoil has consistently delivered strong results, despite the global downturn, which has created challenging market conditions and a significant decline in global shipping which weakened demand for bunker fuel. Our 1st quarter results convey the stability of the company, and the strength of our threepronged corporate strategy to deliver consistent operational efficiencies, controlled global expansion and dynamic product offerings. Our business is supported by strong financial and risk management policies, as well as the flexibility to focus on profitable segments in response to changing markets. This allowed us to remain focused on delivering positive sustained profitability and growth for the long-term.”

The continued decline in the price of energy saw average sales values fall by 47% year-on-year to $254 per metric ton against $478 in 1Q2008, while average purchase costs declined even further by 49% to $239 per metric ton versus $471.

Commenting on the results, Mr Jerome Lorenzo, Chemoil’s Chief Financial Officer, said “Chemoil has maintained a consistent level of profitability from quarter to quarter. In addition, our strategic partnerships and the successful operations of our associates have also contributed towards Chemoil’s profitability in the first quarter of 2009. Chemoil’s financial position remains healthy with shareholders’ equity at US$291 million, including US$45 million in cash and bank balances. Our working capital for 1Q2009 remains stable at US$162 million, while our debt-equity ratios continue to remain low. These results are further testament to the strength of Chemoil’s business model and experienced management team.”

(www.chemoil.com)

Maritime Reporter October 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Port City Plans for New Cargo Taxes Angers Kenya Govt, Shippers

Proposals by a local authority to impose new taxes on cargo at Kenya's main port has drawn opposition from the government and shippers, saying it will hike import

Odfjell Finalizes LPG/Ethylene Joint Venture Deal

Following Odfjell SE’s May 16, 2014 announcement declaring the signing of a definitive agreement to form a LPG/E shipping joint venture, Odfjell today announced

Norvestor to Become PG’s Largest Shareholder

Norvestor VI, L.P., a fund advised by Norvestor Equity AS, announced it has signed an agreement to invest in Ing Per Gjerdrum AS including its subsidiaries PG Hydraulics AS and PG Construction AS.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Electronics Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1586 sec (6 req/sec)