The revelation comes as a surprise to many observers familiar with the US bunker market who note the group recently embarked on a campaign to consolidate some of its international sales offices in an effort to cut costs and combat steep losses.
In the Hong Kong-quoted company’s most recent earnings report it said bunker sales volume plummeted by 37% in the second-half of 2012 to approximately 2.8 million tonnes and warned the oil markets will likely remain “very competitive and volatile” in the months ahead.
Brightoil said it has been forced to take a “more conservative approach” to credit risk management and has started to select customers “more cautiously”, which is partially to blame for the significant drop in bunker sales volume in Singapore and China during the period.
In the six months to 30 December 2012 the group’s trading, bunkering and marine transportation businesses reported a decreased gross profit of HKD $740.7m ($95.5m) and an adjusted gross loss of HKD $233.0m, which amounted to an overall deficit of HKD $871.1m.
Going forward, the company plans to diversify its product lines, expand its bunkering division’s presence in more Chinese ports and hopes to cash in on a new trading hub in Geneva, which opened at the start of 2013.
Brightoil is based in Hong Kong but its network includes outposts in Singapore, Houston, Geneva, Rotterdam, Athens, Tokyo, Seoul, Malaysia and several cities in China. In addition, it controls terminals and a fleet that includes five VLCCs, four aframaxes and a bunker barge.
You can read Brightoil’s latest earnings report in full by clicking on the link located under the Related Media section to the right of this article
