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Chemoil reveals 55% rise in profits for FY08

Singapore: Chemoil today announced a 55% increase in profit after tax to $47.1m for the year ending 31 December 2008 from $30.3m in FY07. Annual revenue rose by 62% to $8.7bn, which was supported by a rise in sales volume of 13% to 16.5m metric tons compared with 14.6m metric tons in 2007.

"During highly turbulent and volatile market conditions, the strength of Chemoil's results for 2008 highlights the performance of our business model in both rising and falling oil markets," said Chemoil's chairman and ceo, Clyde Michael Bandy. "Chemoil has worked to combine stringent financial management, robust operational delivery and dynamic marketing, along with a carefully-planned global expansion. This is underpinned by the flexibility of Chemoil's sales mix that enables us to adjust our sales towards segments that can generate better margins."

Total volumes for 2008 were boosted due to new retail operations in the Middle East and Singapore, as well as greater overall cargo sales. For 4th quarter 2008 (4Q 2008), volumes increased by 23% to 3.8 m metric tons from 3.1m metric tons in 2007.
"Our physical operations in Singapore made a key contribution to increased sales, and our strategy of investing in infrastructure that strengthens our market position and drives growth has been re-affirmed," said Bandy, adding, "The commencement of supply services in the Middle East also contributed to an improvement in 2008 sales volumes."

Despite sharp decreases in the price of energy during 4Q08, which  reduced average sales values, average purchase costs also declined by 29% and the effective use of hedging instruments compensated for price differentials to shield margins.  

Bandy concluded: "As Chemoil moves forward into 2009, we remain prepared for the challenge of navigating the business through a tough economic climate. The slow-down in global trade has impacted the shipping industry and we can realistically envisage potential global demand reduction in the short term. However, our flexible sales mix and our diversified regional operations will provide an optimal balance between harnessing opportunities in new markets while continuing to generate satisfactory results in existing locations. We remain positive in our outlook to deliver continued long term growth."  [26/02/09]

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