KPI OceanConnect, part of Danish fuels group Bunker Holding, has enjoyed strong growth in sales volume and sealed its first carbon offset deal in recent months.
The bunker broker and trader was born out of the merger between KPI Bridge Oil and OceanConnect Marine last August.
Chief executive Soren Holl told TradeWinds that his company’s like-for-like sales volume increased by 26.5% in the financial year ending 30 April compared to the previous year. He declined to provide exact figures.
He attributed the improvement to organic growth and benefits from the merger.
“2020 was a challenging yet rewarding year. We owe the success of our merger to our dedicated, skilful and agile team,” Holl said.
The company’s staff size has shrunk to about 130 people from 170 in 15 locations across the globe, following some departures since the merger was completed.
KPI OceanConnect’s revenue remained stable at $2bn in the latest financial year. Pre-tax earnings amounted to $15.1m, slightly down due to one-time merger costs and business challenges during the Covid-19 pandemic, according to the company.
“Considering the scale and complexity of the merger we effected during the pandemic and the inevitable organisational changes and costs, I’m extremely pleased with our bottom-line result,” Holl said.
The International Maritime Organization has set emission targets for international shipping in 2030 and 2050, and bunker suppliers are expected to play their part in the decarbonisation drive.
“We have already completed our first decarbonisation transaction, which demonstrates our commitment to shipping’s sustainability goals and our long-term partnership approach,” Holl said.
KPI OceanConnect acquired carbon offsets and sold them to its clients in the US in this deal.
“That's something we have been looking into…We are preparing for further business on this area,” Holl said.
The CEO said his company would look at various low-carbon fuels and be “open-minded” rather than betting on any particular type of fuel.
“Going forward, we are dedicating further resources to developing our marine fuels mix as we work in partnership with our clients to safely risk manage their future fuels choices,” he added.
Holl also stressed the merger has enhanced the company’s ability in reducing carbon emissions from maritime transport, with more expertise and knowledge brought together.
“The carbon offset deal we did was actually done by two colleagues, one from KPI Bridge and one from OceanConnect,” he said.
“This is just a good example of how we are reaping some of the synergies by bringing people together.”
