Brightoil swings to profitBrightoil swings to profit

Hong Kong-listed Brightoil posted a profit of HK$544.89m ($70.26m) in the six months ended 31 December 2013 as against a loss of HK$871.15m in the same period of 2012.

Revenue, however, rose 71% year-on-year to HK$40.35bn.

In the six-month period, Brightoil boosted its profit by recording a one-time gain of HK$12.38m from a fair value change of derivative financial instruments, compared to registering a loss of HK$973.7m a year earlier.

The company's international trading and bunkering saw its total bunker sales volume for the six-month period dropped by 26% year-on-year.

“During the period under review, several shipping companies have begun to post gains in profitability as a result of their aggressive cost controls and measures to manage operating efficiencies. The global bunker demand for second half of 2013 is estimated to be flat at best from the first half of 2013,” Brightoil commented.

“The group expects the shipping industry to continue to work through its difficulties for most of 2014, leading to yet another year of relative weak bunker demand. Recovery in shipping industry could come by end of 2014 or in 2015,” it added.

Meanwhile, Brightoil is developing its upstream business to ride on the potentially strong demand for oil and gas resources in China.

The company also highlighted that it has adequately utilised its fleet of five VLCCs and four aframaxes for the transportation of crude oil cargoes. It is also developing its oil storage and terminal facilities in China to meet the demand for large-scale commodity storage, processing, transiting and trading.