Tue 14 Feb 2012, 13:31 GMT

Chemoil posts $79.5 million profit rise



Bunker supply firm Chemoil has today announced that it recorded profit before tax of US$ 26.3 million for the fourth quarter of 2011 and US$ 67.7 million for the full year.

The full year 2011 profitability is in marked contrast to the previous year and represents a positive swing of US$ 79.5 million from the performance in 2010, when losses of US$ 11.8 million were incurred.

Business activities hit new highs as the group generated revenue of almost US$ 11 billion, up US$3.696 billion on the US$ 7.296 billion revenue achieved in 2010.

Gross contribution per metric tonne, the company’s key margin indicator, was US$ 12.1 per metric tonne during 4Q2011 (US$ 5.6 for 4Q2010) and US$ 10.4 per metric tonne for the full year 2011 (US$ 4.1 for FY2010).

Commenting on the results, Chemoil’s CEO, Tom Reilly said: "Chemoil had a good year and our profitability demonstrates the positive results from several initiatives instituted by the group. In 2011, we underwent significant restructuring, recruited new talent across business units and have given regional management greater responsibility, commercial focus and more local back-office support. This has led to better accountability on performance and have encouraged our business leaders to produce notable results."

Chemoil’s COO and CFO, Mats Berglund said: "Stable results from our marine terminals, improved profitability from all our marine fuel supply regions and positive results from our new businesses, OceanConnect Marine and renewables trading, all contributed to the improved results. It’s a decisive turn-around with EBITDA increasing from US$ 16.4 million in 2010 to US$ 105.6 in 2011, a swing of US$ 89.2 million."

Tom Reilly concluded, “The growth prospects of Chemoil for 2012 and beyond are promising. We will continue working hard with further strengthening our marine fuels business and restructure or exit noncore activities. Additionally, we are aiming to grow and diversify Chemoil’s long term profitability through related fuel sales businesses such as our new start-ups Chemoil Aviation (jet fuel) and Chemoil Energy (land diesel sales).”


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