Fri 27 Feb 2009, 09:32 GMT

Chemoil eyes new business opportunities


CEO says the firm has a number of 'targets' on its radar screen during the economic downturn.



Leading marine fuel supplier Chemoil has said that it has a few potential acquisition targets on its radar and is 'favourably positioned' to take advantage of any business opportunities that may arise during the current economic downturn, Reuters reports.

Speaking during a news conference call after the release of its fourth quarter and end of year financial results, Chemoil Chief Executive Clyde Michael Bandy said "As part of our business growth strategy, there's always three or four or five targets on our radar screen, and this year is no different."

"The unprecedented economic downturn has created an environment where many of the players are looking at consolidating or their balance sheets are under distress. I believe Chemoil is favourably positioned - we have a very strong balance sheet which enables us to take advantage of it."

Bandy refused to name the companies Chemoil was monitoring, but said it would explore a number of opportunities in Europe and the Americas and would continue to expand in Asia.

Last year, Chemoil announced that it had acquired a controlling interest in an ocean-front storage terminal located in Batangas, Philippines. The facility has an operational capacity of 34,000 cubic meters that can be used for the storage of petroleum products such as fuel oil, gasoline and diesel.

The terminal is located on 23 hectares of freehold land thereby providing opportunity for further expansion. Chemoil has confirmed that it is exploring the possibility of expanding the terminal in the near future so that additional storage capacity may be used for marine fuels supply.

Another facility, the company's flagship Helios Terminal on Jurong Island, Singapore, also commenced operations at the start of last year.

Meanwhile, in September 2008 Chemoil announced that it had established a joint venture with Adani Group to begin supplying marine fuel at Mundra in the western Indian state of Gujarat.

Joint venture firm Chemoil-Adani Private Limited commenced bunkering operations at Mundra last month and is also able to carry out deliveries at the ports of Kandla, Sikka, Jamnagar and Bedi, all of them located within the state of Gujarat.

Yesterday Chemoil announced that its profit after tax for the year ending 31st December rose by US$16.8 million, or 55 percent, from US$30.3 million in 2007 to US$ 47.1 million. The company said a 62 percent increase in annual revenue had been boosted by sales volumes from its new supply operations in the Middle East and Singapore, together with an increase in cargo sales.


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