Thu 7 Apr 2022, 15:31 GMT

Monjasa posts reduced profit amid tighter margins


Sales volume and revenue reach record levels, but margins are squeezed.


The 8,839-dwt Monjasa Supplier.
Image credit: Monjasa
Marine fuel supplier and trader Monjasa reports that annual profit decreased by 26.7 percent to $22m in 2021 — a period described by its CEO, Anders Østergaard, as "a year of continued volatile oil and shipping markets" as group revenue surged whilst profit margins were squeezed.

Monjasa's services and products were more in demand than ever as bunker sales volume increased for the fourth consecutive year, by 800,000 tonnes, or 16.3 percent, to 5.7m tonnes in 2021. It means that Monjasa's total volume has risen by 63 percent in four years — from 3.5m tonnes in 2017.

Total revenue exceeded $3.2bn for the first time, jumping $1.278bn, or 65.5 percent, to $3.229bn. Monjasa explained that this was due to the average oil price increasing by 69 percent compared to the previous year, which in turn resulted in a significant increase in revenue and a reduction in gross and profit margins.

The profit margin (calculated as profit before financial income and expenses as a percentage of revenue) and gross profit margin (revenue minus cost of goods sold divided by revenue and multiplied by 100) fell to 0.9 percent and by 2.7 percent, respectively.

Key Performance Indicators: 2017-21

Year Net Profit ($m) Revenue ($m) Sales Volume (MMT)
2021 22.0 3,229 5.7
2020 30.0 1,951 4.9
2019 26.5 2,191 4.5
2018 4.9 2,073 4.1
2017 6.8 1,407 3.5
As regards the balance sheet, group equity rose by $18.9m, or 13.9 percent, to $155m in 2021, whilst liabilities were up by around $141.2m, or 71.1 percent, to $339.7m.

The equity (or solvency) ratio — i.e. equity as a percentage of total assets — was 31.4 percent, down from 40.7 percent the previous year.

Balance Sheet: 2017-21

Year Equity ($m) Liabilities ($m) Total/Assets ($m)
2021 155.0 339.7 494.7
2020 136.1 198.5 334.6
2019 134.8 334.9 469.7
2018 120.5 296.2 416.7
2017 124.0 215.0 339.0
Ratios and Margins: 2017-21

Year Equity Ratio (%) Gross Margin (%) Profit Margin (%)
2021 31.4 2.7 0.9
2020 40.7 4.8 1.7
2019 28.7 4.3 1.6
2018 28.9 2.4 0.4
2017 36.6 3.6 0.5
Supply Locations

Monjasa said it recorded notable volume growth in the Americas with soaring demand across US ports and the expansion of its supply operations in the Panama Canal, Colombia and Houston, which bolstered supply tonnage in the region to 1.95m tonnes — up from 1.4m tonnes the previous year. Consequently, Americas tonnage made up 34 percent of Monjasa's global total, compared with 28 percent in 2020.

In terms of other regional volumes, 19 percent was sold in West Africa (down from 22 percent in 2020), 16 percent in Europe (18 percent in 2020), 16 percent in Southeast Asia (18 percent in 2020) and 15 percent in the Middle East (14 percent in 2020).

Top-selling bunker locations, 2021

Ranking +/- Location Country
1 (--) Balboa Panama
2 (--) Singapore Singapore
3 (+1) Jebel Ali UAE
4 (-1) Lomé Togo
5 (+2) Cristobal Panama
6 (+3) Congo Congo
7 (-2) Houston USA
8 (-2) Fujairah UAE
9 (E) Rotterdam Netherlands
10 (E) Antwerp Belgium
+/- column:
(--) = same compared to previous year
(+) = up x places compared to previous year
(-) = down x places compared to previous year
(E) = entrant into the Top 10

Evaluation of performance and outlook

Discussing the results, Østergaard commented: "Above all, we are very satisfied with our continuous positive financial results, also considering [the] recent ... volatile global trade environment. Our steady performances allow us to keep evolving our business around what we know best, which is providing maritime logistics and making our business personal across shipping communities in every port.

"Looking ahead, Monjasa will continue to observe and navigate the markets around us and use our experience to match supply and demand throughout the volatile and turbulent markets and structures."

Østergaard added: "Monjasa will emphasise being a strategic trading partner. By growing together with our customers and seeking out new markets that appreciate high quality and compliance standards, we are confident of another positive financial year in 2022."


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