Brightoil Petroleum (Holdings) Limited has announced that bunker sales volumes increased by 117 percent for the year ended 30 June 2010 in a comparison with the year earlier period.
The sales figures were revealed as the group announced its annual results for the year ended 30 June 2010, where Brightoil achieved a 334 percent rise in the profit attributable to shareholders of approximately HK$1.14 billion, compared to HK$263 million in 2009.
Gross profit for the group skyrocketed 185 percent from HK$538 million to HK$1.53 billion and total revenue increased by 150 percent to HK$13.63 billion.
Basic earnings per share was HK19.0 cents, up 265 percent compared to the previous year. Diluted earnings per share increased to HK15.6 cents from HK5.2 cents in the previous year. A final dividend of HK3.0 cents per share has been proposed for the period under review.
Commenting on the results,
Dr. Sit Kwong Lam, Chairman and CEO of the Group, said, "2010 was a significant year for Brightoil Petroleum, delivering record results for our shareholders and further strengthening the group's competitive advantages for future development. We will continue to harness our unrivalled position as one of the largest marine bunker suppliers in China and to pursue further exposure around the world, in order to strengthen our global brand recognition and also secure long-term earnings potential. "
Marine Bunkering
For the year ended 30 June 2010, bunker sales volumes rose to approximately 3.9 million tonnes, representing an increase of 117 percent over the previous year.
Brightoil's operations covered ports in
Shenzhen,
Shanghai,
Ningbo and
Zhoushan, which contributed a revenue of approximately HK$6.38 billion to the group - a 20 percent growth over the previous year. The group also plans to expand into other major Chinese ports including
Rizhao,
Tianjin,
Dalian and
Qingdao in the near future.
During the period, Brightoil also provided services in ports outside mainland China, including Hong Kong, Singapore and Antwerp-Rotterdam-Amsterdam. The overseas ports contributed approximately HK$7.25 billion of revenue with approximately 2 million tonnes of fuel oil being sold, compared to nil in 2009.
In July 2010, the company began its operation in
Tanjung Pelepas, Malaysia.
"For the overseas market, we will expand our operations in the US soon. Preparation work for launching our bunkering service in Houston port is in the final stage," Brightoil said.
Oil Storage & Terminal
Dredging and reclamation works for phase 1 of the
Zhoushan and
Dalian projects started on 6 July 2010 and 18 June 2010 respectively. Both projects, with a total capacity of up to 17.5 million cibic metres (cbm), are scheduled to be completed in phases by 2012 and 2013.
Brightoil aims to take advantage of the strategic locations of its oil storage and terminal projects in Dalian and Zhoushan with deepwater terminals, thus supporting Brightoil's marine bunkering operations in major ports along the coast of China.
"To capture the robust growth of the global marine bunkering business, we relentlessly seek storage and terminal support either through leasing from local operators, strategic partnerships with storage owners or constructing our own facilities," Brightoil said.
Marine Transportation
From November 2009 to August 2010, the group purchased 9 ocean-going oil tankers with sizes ranging from 107,500 DWT to 318,000 DWT.
Two oil tankers weighted 107,500 DWT have each been delivered and are now in operation, while the other two oil tankers with capacity of 115,000 DWT each are expected to be delivered around October and November 2010.
On 30 August 2010, the group entered into 5 shipbuilding contracts with Hyundai Heavy Industries Co. Ltd. to purchase 5 new build Very Large Crude Carriers (VLCCs) each weighted 318,000 DWT.
The 5 VLCCs are now under construction and expected to be delivered to Brightoil between July 2012 and March 2013.
Upstream Business
In August 2009, the group signed its first upstream production sharing contract (PSC) with
China National Petroleum Corporation (CNPC) for the Tuzi Block, situated in
Xinjiang Province, China.
The agreement was implemented by the Chinese Ministry of Commerce on 1 December 2009. The group has a 21 month evaluation period to produce an Overall Development Plan and seek approval to develop the field in accordance with those plans.
The Tuzi field was discovered by CNPC in 1999. The PSC covers an area of 158 km2, and is situated immediately north of the Dina-1 gas and condensate field, which Shenzhen Brightoil Group Co., Ltd. is currently developing and putting into production.
A reserve of 22.1 billion m3 (780 billion feet3) of gas in place was certified by the Chinese Government. Brightoil says it believes the project will provide significant upside to its shareholders given the surge in demand for natural gas and the uptrend of gas prices in China.
In January 2010, the group reached a consensus with CNPC to accelerate the Tuzi Development. It is now aiming to start production in the second half of 2011.
Looking forward, Dr. Sit concluded, "Brightoil Petroleum endures in its commitment to integrate its value chain in the energy sector, from the expansion of global marine bunkering operations, formation of marine transportation fleet, establishing oil storage and terminal operations, to seeking upstream exploration and production opportunities, we believe all these will bring enormous benefit to the Group. With the Group's vision to be one of the leading global energy conglomerates in the world, our management team will continue to devote significant effort on the establishment of a solid foundation by integrating both upstream and downstream businesses, and deliver favourable return to our shareholders."
