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Monjasa posts profit and volume rise in 2020

Annual report shows positive financials despite disruption to global maritime trade flows.

The 9,600-dwt tanker Monjasa Server, acquired from Golden-Agri Stena, features five tank segregations for the storage of multiple fuel grades. Image credit: Monjasa

Updated on 14 Apr 2021 14:32 GMT

Bunker supplier and trader Monjasa reports that it managed to successfully navigate the disrupted global fuel markets and conclude 2020 with a year-on-year increase in both total sales volume and net profit, whilst also increasing equity, improving its solvency ratio and lowering overall debt.

Monjasa posted a rise in net profit of $3.5m, or 13 percent, to $30m last year. This was despite the challenges of the IMO 2020 transition and the Covid-19 pandemic, with the International Bunker Industry Association (IBIA) estimating a drop in global marine fuel activity of anywhere between 7 and 17 percent.

Monjasa's services and products were more in demand than ever as the business posted a 9 percent jump in total volumes to 4.9m metric tonnes, with increases in each month of 2020 compared to 2019 levels. In the space of three years, sales tonnage climbed 40 percent from 3.5m in 2017.

Total revenue fell $240m, or 11 percent, to $1.951bn in 2020 as higher total supply volume was offset by a decrease in average oil price levels from $64 to $42 per barrel, Monjasa said.

Both 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) grew for the second successive year - to 1.7 percent and 4.8 percent, respectively.

Key Performance Indicators: 2016-20

Year Net Profit ($m) Revenue ($m) Sales Volume (MMT)
2016 -25.8 1,159 3.9
2017 6.8 1,407 3.5
2018 4.9 2,073 4.1
2019 26.5 2,191 4.5
2020 30.0 1,951 4.9
In terms of the balance sheet, group equity was marginally up by 1.3m, or 1.0 percent, to 136.1m in 2020, whilst debt was reduced by $136.4m, or 40.7 percent, to $198.5m.

The equity (or solvency) ratio - i.e. equity as a percentage of total assets - was 40.7 percent, up from 28.7 percent the previous year.

Balance Sheet: 2016-20

Year Equity ($m) Debt ($m) Total/Assets ($m)
2016 113.0 199.2 312.2
2017 124.0 215.0 339.0
2018 120.5 296.2 416.7
2019 134.8 334.9 469.7
2020 136.1 198.5 334.6
Ratios and Margins: 2016-20

Year Equity Ratio (%) Gross Margin (%) Profit Margin (%)
2016 36.2 2.6 -1.5
2017 36.6 3.6 0.5
2018 28.9 2.4 0.4
2019 28.7 4.3 1.6
2020 40.7 4.8 1.7
Supply locations

Balboa continued to be the group's top-selling bunker location last year. The Panama port was followed in the list by Singapore, Lomé and Jebel Ali. Houston, a location that did not even make the Top 10 in 2019, rose to fifth place.

Monjasa says it experienced the most notable positive developments in the Americas and Southeast Asia.

Led by high activity levels in the Panama Canal and across the United States, the Americas region recorded a 22 percent increase in volume with sales of 1.4m tonnes, or 28 percent of its global total.

Likewise, a soaring demand for Monjasa's services across Southeast Asia, and particularly in the port of Singapore, resulted in an 80 percent volume increase to 900,000 tonnes across the region, or 18 percent of worldwide tonnage.

In terms of other regional volumes, 22 percent was sold in West Africa, 18 percent in Europe and 14 percent in the Middle East.

Top-selling bunker locations, 2020

Ranking +/- Location Country
1 (--) Balboa Panama
2 (+1) Singapore Singapore
3 (-1) Lomé Togo
4 (+2) Jebel Ali UAE
5 (E) Houston USA
6 (-1) Fujairah UAE
7 (-3) Cristobal Panama
8 (--) English Channel UK
9 (--) Congo Congo
10 (E) Skaw Denmark
+/- 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, Group CEO, Anders Østergaard, commented: "During a year of unseen events, Monjasa's highest priority was to ensure health and safety for our employees and uninterrupted supply of marine fuels to the shipping industry. We succeeded in providing a safe working environment and despite the disrupted maritime trade flows, we recorded an increasing demand for our services and products.

"Monjasa's response to these challenges reflects our organisational and maritime capabilities in matching supply and demand no matter the circumstances. Together with our strong financial results, Monjasa is in a very solid position to face future industry challenges and financial requirements."

In 2021, Monjasa says it foresees increasing global trade uncertainty which in turn is likely to have an impact on trade flows and oil demand; however, the company is confident of another year of positive financial results.

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