OW Bunker hit by a loss in Q3

The net loss in the quarter ended 30 September 2014 was recorded at $5.8m as against a profit of $20.7m in the same period of last year.

Revenue during the quarter improved slightly to $4.52bn compared to $4.41bn a year ago.

“Overall the third quarter results were very disappointing. The fall in the oil price in particular in September was exceptional and led to a $24.5m unrealised risk management loss,” said Jim Pedersen, ceo of OW Bunker.

In the first nine months of this year, OW Bunker reported a profit of $27.6m, down 37.3% compared to $44m in the previous corresponding period.

“We reduce our full year volume forecast in a move to focus on higher margin business,” Pedersen said. OW Bunker has reduced its expected full year 2014 bunker sales volume growth to around 6% compared to 2013 from previously approximately 10%.

In the third quarter, marine fuel transaction volumes rose 2% year-on-year to 8.01m tonnes. The volume growth was below expectations, but considered satisfactory in a difficult market affected by a steep decline in the oil price, OW said.

The company added that in case of an average oil price of $92 per barrel during the fourth quarter of 2014, the full year profit, before special items, is expected around $55m.

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