SGX mainboard-listed Chemoil, a leading supplier of marine fuel, announced yesterday that it has recorded profit after tax attributable to equity holders of US$ 133.7 million for the fourth quarter, and US$ 153.2 million for the full year of 2012. The increase in profit is attributable mainly to the gain in the sale of its terminal assets in Singapore at the end of 2012.
Revenue for the fourth quarter increased to US$ 3.3 billion, up 6% from the fourth quarter last year, and an increase of 24% to US$ 13.6 billion for FY2012. The company showed strong increases in sales volumes of 15% for the fourth quarter to 5.3 million tons, and 16% for FY2012 to 20.3 million tons.
Chemoil's CEO, Tom Reilly stated, "Last year we took a highly strategic decision to sell Helios Terminal at a significant gain. Through the sale, we were able to realize its market value, which had increased substantially since we completed its construction in 2008. The success of the sale has boosted our profitability for FY2012, and at the same time provided us with the resources to finance our growth investments."
Gross contribution per metric ton (GCMT), the company's key margin indicator, was lower at US$ 6.4 per metric ton during the fourth quarter (US$ 10.7 last year) and US$ 6.7 per metric ton for FY2012 (US$ 8.9 for FY2011).
Chemoil's CFO, Fred Bendle emphasized, "There was continued weakness in our customer base as well as narrow spreads in the fuel oil markets during 2012, thereby impacting our margins per ton. Likewise, with the weakness in the shipping sector, we marked down our shipping assets, contributing to the loss from continuing operations. Overall, our financial position has greatly improved with shareholders' funds of US$ 484 million."
Source: Chemoil Energy Limited