---

SGX Mainboard-listed Chemoil, one of the world’s leading suppliers of marine fuel, today reported a net profit attributable to equity holders of US$11.5 million for the year ended December 31st 2009, representing a $35.6 million, or 75.6 percent, fall in net profit from the $47.1 million recorded in 2008.

Sales revenue during the 12 month period decreased by 33.6 percent to $5,750.2 million from $8,662.1 million in 2008, whilst total sales volumes were down by 8.5 percent from 16.5 million tonnes in 2008 to 15.1 million tonnes last year. This was said to be due to lower wholesale volumes in Europe and the Americas combined with lower ex-wharf volumes in Asia.

The gross contribution per metric tonne also nosedived in 2009, falling 17.1 percent from $8.26 to $6.85.

However, supported by strong retail volumes in Asia, retail marine fuel sales rose by 6 percent in 2009 – accounting for 59 percent of all volumes throughout the year.

Chemoil also said that profits from affiliate and joint ventures companies increased by 89 percent to $12 million in 2009 compared to $6.3 million in 2008.

Fourth Quarter 2009

Net profit of $2.9 million in the fourth quarter of 2009 was $9.4 million, or 76.4 percent, below the $12.3 percent profit gained during the corresponding period the previous year.

The gross contribution per metric tonne during the last quarter of 2009 dropped 29.5 percent, from $8.97 to $6.32.

Meanwhile, sales revenue rose by 45.2 percent during the October to December 2009 period to $1,839.8 million from $1,267.4 million in 2008.

Sales volumes of marine fuel also rose by 5.3 percent to 4 million metric tons from 3.8 million metric tonnes during the last three months of 2008.

Retail sales increased by 4.5 percent from 2.2 to 2.3 million metric tonnes during the same period.

Commenting on the results, Chemoil’s Chairman and CEO, Mike Bandy, said: “The global recession has created difficult market conditions in 2009 in some of our port locations. However, Chemoil’s ability to tailor its integrated supply chain to reflect market conditions has enabled the company to increase retail volumes through a difficult year and remain profitable. As a reflection of the strength of our business strategy, our investment in logistics assets over recent years has enabled the business to take advantage of the stable revenue and profitability despite the volatile market. Moreover, our expansion through a partnership approach reinforces our growth strategy, and our joint ventures and associates such as IPC (USA), Burando, Galaxy, and ChemoilAdani have contributed significantly to our bottom line in 2009.”

Chemoil’s Chief Financial Officer, Mr Jerome Lorenzo, explained: “While parts of Chemoil’s business have been impacted by the global downturn, the company’s balance sheet continues to remain strong at US$304.1 million in shareholder equity as at December 31, 2009 compared to US$291.3 million for the previous year, an increase of US$12.8 million. Our risk management team continues to fortify the risk management process against customer default through frequent review and monitoring of customer credit.”

Mr Bandy concluded: “There are signs of improved business conditions for 2010 amid small gains in global trade volumes and improving market sentiment. However, the overall weakness of the shipping sector is a constant reminder that recovery will be challenging in 2010. Consequently, as Chemoil continues to seize opportunities, we need to remain agile and proactive to the changing market conditions. Chemoil will continue to adapt its diversified supply strategy and flexible sales mix as required to strengthen the stable revenue streams and tap the more profitable market segments. Combined with the increased operational strength of our strategic partners, our aim is to continue to improve from the earnings and profitability of 2009.”