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Monjasa reports that the company has achieved positive net results for the first quarter following a challenging 2016.

In its annual report for last year, Monjasa posted a decline in revenue of 25 percent, or $0.4 billion, to $1.2 billion, during a period that saw oil prices fall by 19 percent, the company points out. The net result for 2016 was a loss of $26 million compared to a gain of $24 million the previous year.

However, the Danish bunker firm says it has "turned developments round" following what it describes as a "focused and proactive effort".

Commenting on the shipping climate last year, Monjasa Group CEO, Anders Ostergaard, remarked: "Like the majority of our competitors and customers, we can conclude that 2016 was an extremely challenging year in global shipping. Therefore, we have been working very focused on optimizing our core business and adjusting to the new normal in global shipping with lower margins in all our primary markets.

"It is difficult to protect oneself against a global shipping crisis which was further worsened in 2016 with a downward trending demand for transportation of goods, a widespread overcapacity, and a ruined offshore sector because of the very low and continually decreasing oil prices.

"Therefore, I concentrate on the fact that we present a positive result in this year's first quarter, despite the very unsatisfying result in 2016. This demonstrates that our core business is healthy and that the many proactive adjustments we have put in motion are paying off."

Reduction in working capital and a focus on compliance

Amongst other measures, Monjasa says it has optimized its business by adjusting the size of its fleet from 26 to 20 tanker vessels to match current market demands. At the same time, credit agreements and oil storage are said to have been optimized, with a total reduction in working capital of $75 million.

Additionally, despite the weak shipping market, Monjasa has continued to invest in digital compliance systems for the screening of counterparties. Furthermore, as part of its push for increased health safety, environment and quality (HSEQ), Monjasa is the world's first bunker company to have obtained upgrades to the latest ISO certifications in quality management (ISO 9001:2015) and environmental management (ISO 14001:2015).

Market share, solvency and equity

Monjasa notes also that, in terms of sales volume, its global market share was "essentially maintained" last year with a "modest" decrease from 4.1 million tonnes to 3.8 million tonnes.

At the same time, in its last annual report, the company posted a solvency ratio of 36 percent and a consolidated equity of $113 million.