Chemoil sees weaker bunker demand worldwideChemoil sees weaker bunker demand worldwide

The US-based bunker supplier noted that the European economic situation and the possibility of conflict in the Middle East will be factors influencing demand and prices.

Chemoil, however, added that the wholesale-retail spreads are improving and benefiting marine fuel suppliers.

In its full year results announcement, Singapore-listed Chemoil revealed group sales volume in 2012 of 20.3m metric tonnes compared to 17.5m metric tonnes in 2011, an increase of 16%.

The average purchase price of bunkers in 2012 was $657 per metric tonne, 8% higher compared to $609 per metric tonne in 2011.

Following the sale of its fuel oil terminal assets in Singapore at the end of 2012, Chemoil posted a huge jump in full year net profit to $153.16m, more than tripled from a profit of $46.28m in 2011. “Last year we took a highly strategic decision to sell Helios Terminal at a significant gain,” said Tom Reilly, ceo of Chemoil.

Revenue also rose 24% year-on-year to $13.66bn in 2012.

Shipowners are increasingly concerned over soaring bunker fuel bills which could easily account for up to 70% of a vessel's operating costs.