Fri 15 Aug 2008 08:12

OW Bunker announces 65% rise in profit


Record half-yearly results driven by strong revenue growth.



Leading bunker supplier and trader OW Bunker has announced record half yearly results for January to June 2008. Profit before tax rose to $31.6 million, an increase of 65 percent from the same period in 2007, and the company generated revenue growth of 67 percent to $4.165 billion, up from $2.487 billion.

This upward trend has also continued with the company posting record profits for July 2008. The company’s performance has been realised through increased credit lines, unprecedented growth in new markets, operational efficiencies within the supply chain and exponential growth within its risk management division.

The financial strength of OW Bunker, supported by Altor, one of Europe’s leading private equity funds has provided the company with access to substantial credit lines from suppliers. OW Bunker says that its continued focus on generating efficiencies within the supply chain has enabled it to provide clients with access to quality products and services whenever they need them.

OW Bunker’s financial growth runs in parallel with the company’s strategic global expansion plans. In the last year it has launched new offices in Dubai, Chile and South Korea, all of which have realised higher than anticipated growth. It has also invested over $100 million in developing its global fleet, bringing on line over 12 new vessels in the last year, with more due throughout 2008 and 2009.

OW Bunker has also developed its internal operations, systems and processes, including a training programme which has drawn new recruits from other sectors. The company has also significantly grown its world-wide risk management team, working closely with customers to develop effective hedging strategies in order to lock in their costs and maximise profitability amidst volatile and soaring fuel prices and tough economic times.

The company says its development programme is geared towards building close, consultancy-based relationships with customers, and working with them to improve the performance of their businesses; setting new benchmarks for success and high levels of service within the bunker industry.

Speaking about the company's performance, Jim Pedersen, OW Bunker Chief Executive said “This record growth over the past six months is testament to OW Bunker’s financial strength, which has enabled us to generate increased credit lines with suppliers, and to facilitate our ambitious global expansion plans.

"The high performance in all areas of the business, as well as growth within new markets also demonstrates the strength of our business strategy and our ability to deliver even in a volatile economic climate. Our focus will remain firmly on providing high levels of service and operational excellence for our customers, as well as continuing to invest in further expansion and development in all aspects of the company in line with our growth plans.”

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