Hong Kong-based NewOcean Energy Holdings has reported a 13% increase in total sales volumes of energy products in 2019, but a 7% fall in revenue because of a drop in prices. The group’s bunker volumes were up 66%, however, boosted by its expanding activities in Singapore and Malaysia.
The group’s Annual Results and Corporate Update published yesterday (25 March) recorded a 6% drop in marine bunkering volumes in China, from 678,600 metric tonnes (mt) in 2018 to 638,00 mt, but a jump of almost 90% in Singapore and Hong Kong, from 2,018,000 mt to 3,826,000 mt. The group’s bunkering arm in Singapore is still relatively new, having been established in November 2017, so one would expect to see strong year-on-year growth. NewOcean Energy has also been refocusing on direct sales to end-users rather than its back-to-back trading business, which saw a decline of around 40%.
NewOcean Energy launched a bunkering arm in Malaysia in the third quarter of last year and in yesterday’s update it said it is ‘currently planning to expand the marine bunkering business to all of the ports in Malaysia’. The firm also report that ‘despite a delay due to the government change at the beginning of the year’, its project to build a refinery in Malaysia is now ‘back on track’.
In Hong Kong, meanwhile, NewOcean Energy said it is ‘focusing more on marine gas oil sales rather than marine fuel oil due to the heavy competition’.
NewOcean Energy also noted the implementation of the IMO 2020 sulphur cap, reporting that it has ‘secured stable supply of very low sulphur fuel oil to meet the switching demand’.