Bunker Holding posted its “best-ever” results in the last financial year due to preparation for IMO 2020 and strong performance of its physical delivery business, the company said.
The Danish fuel conglomerate recorded pre-tax earnings of $155m in the year ended on 30 April, up from $77.3m in the previous financial year.
Revenue grew to $10.9bn from $10.6bn.
In a press release, Bunker Holding said the improved results reflects increased margins in fuel sales as the company made “through preparation” for the IMO 2020 switch with “global expertise and presence”.
The IMO has lowered the sulphur cap in marine fuel, starting in January, from 3.5% to 0.5% for all ships except those that are fitted with scrubbers.
“Bunker Holding creates value for clients every day by working with them as a trusted partner and help them manage an ever more complicated and critical bunkering process,” said chief executive Keld R Demant.
“We make bunkering seem simple by providing our clients with expert advice on crucial issues such as bunkering strategy, financing and availability, and with local intelligence in ports all over the world.”
The company also said it enjoyed “a strong result” from physical delivery arm Bunker One, but it did not provide detailed figures.
“In only its second full year of operations, Bunker One entered West Africa, strengthened its portfolio in Scandinavia, and became the market leader in the US Gulf Offshore and Caribbean,” Bunker Holding said.
“This was part of an ongoing strategy to increase its activities and investments around the globe, and already Bunker One has 22 supply locations worldwide.”
Aside from Bunker One, Bunker Holding’s main business units include Dan-Bunkering and KPI Bridge Oil.
Looking forward, the company highlighted the uncertainty over its business environment due to the Covid-19 pandemic and warned that the crisis will hit the entire industry.
“But we are confident that the strengths that carried us through last year will also help us through the coming turbulent months,” Demant said.
“We enjoy superior financial strength as well as great stability afforded by our family ownership, and we have highly skilled employees and market expertise. All these advantages mean that we can and will keep pursuing sustainable growth.”
Bunker Holding had an equity base of $357m as of 30 April, up by 12.2% over the previous year and highest in the company’s history.
