Chemoil Reports 3Q Results

SGX Mainboard-listed Chemoil (SGX-ST: CHEL.SI) announced its financial results for the 3rd quarter of the 2007 financial year. Revenue showed a growth of 31.2 per cent to $1.6b compared to $1.22b in 3Q2006. The revenue performance in this quarter was driven largely by higher sales volumes in Panama, New York and Houston, as well as higher cargo sales. For the first nine-months of 2007 (9M2007), revenue stood at $3.91b, approximately 20 per cent higher than the previous year. For 9M2007, the company posted a net profit of $15.9m while posting a net loss of $2.5million in 3Q2007. The loss for 3Q2007 was mainly brought about by the hedging results during the first part of the 3rd quarter 2007 wherein there was a lack of correlation between the price movements of the crude oil hedges and the physical fuel oil inventory, a risk that is inherent in its business. The profit warning also indicated that the disruptions experienced in the floating storage facilities in Singapore that had its primary impact in 2Q2007 also had residual effects in the 3rd Quarter.