Brightoil FY profit down 76% to $40mln
China biggest private bunker player Brightoil Petroleum reported a 76% plunge in full-year net profit to HKD310m ($40m) due to "severe economic conditions" the company said at a press briefing, Seatrade Asia online reports.
While revenue rose 77% to HKD69.9m from HKD39.6m previously, profits were impacted by sharply higher operating costs, which more than doubled to HKD1.4m and a resultant fall in gross profit margin to just 1%.
Brightoil's trading and bunkering business was still the main revenue generator making up almost 90% of pre-tax earnings and recording a 46% rise in sales volume to almost 13m metric tonnes. But thin physical margins rising operating costs weighed on profits.
The group's marine transportation was the star performer though, as more vessels came into the fleet to contribute to revenue. Brightoil currently has four aframaxes and one bunker barge in full operation and will have three of its five VLCCs delivered by the end of the year. The vessels are performing satisfactorily, Brighoil said revenue nearly tripled to HKD253m from HKD87m previously.
Brightoil also updated that its tanker storage business and upstream business are progressing well. Terminal projects in Zhoushan and Dalian are going according to plan and will begin operation in mid-2014 and early 2015 respectively. In upstream, Brightoil's Dina 1 gas project has started partial production and is expected to hit full production next year while its latest Tuzi project is expected to start production in March 2013.
