Wed 5 Mar 2014 13:44

OW Bunker sells 29.2 million tonnes in 2013


Bunker firm reports strong 2013 results with above 30% growth in volume and profitability.



For OW Bunker, one of the world’s leading marine fuel suppliers, 2013 was a year of strong financial results, most notably witnessed by a 37% growth in adjusted profit for the year on a 32% growth in volume of marine fuel distributed.

For the three years ended 31 December 2013, OW Bunker’s volume grew at a compounded annual growth rate (CAGR) of 24%, while adjusted gross profit and adjusted profit for the year grew at a CAGR of 23% and 33%, respectively. In the same period, OW Bunker has delivered an average adjusted return on equity of 27%.

Financial highlights

- Volume of marine fuel distributed increased 32% to 29.2 million tonnes in 2013 from 22.1 million tonnes in 2012.

- Adjusted gross profit was USD 218.8 million in 2013 - an increase of USD 54.3 million (33%) compared to USD 164.5 million in 2012.

- Adjusted gross profit per tonne was stable at USD 7.5 in 2013 (2012: USD 7.5).

- Adjusted profit before tax (EBT) was USD 86.5 million in 2013 - an increase of USD 22.8 million (36%) from USD 63.7 million in 2012, corresponding to an adjusted EBT per tonne of USD 3.0 in 2013 (2012: USD 2.9).

- The adjusted profit for the year was USD 68.3 million - an increase of USD 18.5 million (37%) compared to an adjusted profit for the year of USD 49.8 million in 2012.

- Adjusted return on equity was 31% in 2013, up from 25% in 2012.

- In December 2013, OW Bunker signed a USD 700 million revolving credit facility, refinancing a USD 450 million facility. The new facility was more than 100% oversubscribed.

- As at 31 December 2013, OW Bunker's total liquidity reserve amounted to USD 303.2 million. In addition, as part of the credit facility, OW Bunker has an option to request a USD 100 million accordion facility at the discretion of each lender.

Commenting on the results, Jim Pedersen, OW Bunker’s CEO, said: "Last year’s results are the continuation of a long track record of profitable, organic growth and a confirmation that our dedication to working integrated with reselling and physical distribution of marine fuel is the right path to success. With our well-invested, scalable business platform and global reach, I am confident that we will continue our solid performance and successfully develop our business further."

Outlook 2014

OW Bunker said it expects to continue to develop its business, strengthen its market position and further gain market share, and based on current market conditions and outlook, OW Bunker believes that it can grow volume by approximately 10% this year compared to 2013.

The company said it expects to continue to benefit from scale in its cost base and aims to increase profit for the year at least in line with the growth in volume.

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