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NewOcean records USD 174 million 1H 2020 loss; Singapore bunkering business remains

Covid and the slump in oil prices substantially reduced gross profit margins for the company’s bunkering and electronics businesses, it said in a recent financial filing.
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Hong Kong-listed NewOcean Energy Holdings Limited (NewOcean), the parent company of bunkering firm NewOcean Fuel, on Monday (31 August) published its unaudited interim results for the first six months (1H) ending 30 June, 2020. 

Following the profit warning posted by the group on Friday (28 August),  NewOcean reported a HKD 1,351 million (USD 174 million) loss for 1H 2020; the group recorded consolidated profit of 301 million (USD 38.9 million) in 1H 2019.

The loss was mainly due to the drop in gross profit and additional provision for account receivables, inventories and property, plant and equipment, it said. 

Due to COVID-19 and the slump in global oil prices, the gross profit margin derived from oil bunkering business and electronic business has been substantially reduced or turned into gross loss margin, explained NewOcean. 

The overall gross margin from these sectors decreased to 0.4% as compared to 6.2% of the same period in last year.

On top of the above, the company noted it also experienced undue delay in trade receivables collection and inventory being sold at a loss in recent months, therefore it has to make additional impairment losses on trade receivables and allowance for inventories for 1H 2020.

The additional impairment losses amount to HKD 554 million (USD 71.5 million), as opposed to HKD 8 million recorded in the same period last year.

Due to the collapse of Hin Leong Trading Pte Ltd and the global oil slump in 1H 2020, NewOcean noted a number of banks demanded a reduction in short term credit extended to the company. 

In order to mitigate the liquidity pressure and to improve its financial position, the company said its Directors have implemented a proactive approach to negotiate with banks to arrange and agree on a debt restructuring.

“Our gross margin of LPG business remained above 10%. Since our major competitors had turned to cut-throat tactics to sell products in large lots at low prices for cashing in during March and April, we unwillingly had to use the same tactic for our oil products business, that was to sell products below costs for the depletion of its holding stock to avoid further impairment risks from the ongoing oil price slump,” said NewOcean in its report. 

“These explain the recorded negative gross profits in our marine bunkering business during March and April. 

“As the market had restored in May and June, both our gross profits and gross margin had adjusted back to normal, despite the fact that our average overall gross profits for the six months were dragged down to a low of 1.11% (same period of last year: 4.28%).”

NewOcean said it will scale down its oil products business to focus on the sales of products with high gross profits as well as measures to reduce costs. 

Since the cost of refueling business in Hong Kong is relatively high, the company said it is committed to selling wholesale to clients who are distributors, and to lease its existing oil tankers to wholesalers.

Its bunkering business at Singapore will still continue operations due to relatively stable gross profits and high commodity flow.

Moving forward, NewOcean noted it will take the occupancy of around 100,000 tonnes among the total leased capacity of 300,000 tonnes of storage, while the balance of 200,000 tonnes will be leased to third parties to reduce overhead costs. 

Related: NewOcean Energy publishes profit warning to shareholders ahead of 1H 2020 results
Related: NewOcean Energy records 66% bunker sales jump to 4.5 million mt in FY 2019


Photo credit: NewOcean Energy Holdings
Published: 1 September, 2020

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Methanol

OOCL dual-fuel boxship completes first green methanol bunkering op at Qingdao Port

“OOCL Wisdom” completed its first green methanol bunkering and commenced its maiden voyage to Europe at Qingdao Port on 3 July.

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OOCL dual-fuel boxship completes first green methanol bunkering op at Qingdao Port

​International container transportation and logistics company Orient Overseas Container Line (OOCL) on Friday (3 July) said its first methanol dual-fuel containership, OOCL Wisdom, completed its first green methanol bunkering and commenced its maiden voyage at Qingdao Port.

OOCL Wisdom is the first in a series of seven methanol dual-fuel container vessels. With a maximum capacity of 24,168 TEU, it is currently the world’s largest methanol dual‑fuel container vessel and is deployed on the Asia – North Europe Loop 1 (LL1) service.

Mr. Peter Pan, Director of Trades of OOCL, said: “OOCL Wisdom completed its first green methanol bunkering and commenced its maiden voyage to Europe at Qingdao Port, representing a significant achievement of the deepening collaboration between OOCL and Shandong Port Group, and reflecting OOCL’s steadfast commitment to green and low‑carbon development, digital intelligence and sustainability.”

 

Photo credit: Orient Overseas Container Line
Published: 6 July, 2026

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LNG Bunkering

Zhejiang Province wraps up first cross-regional bonded LNG bunkering operation

“Hai Yang Shi You 302” supplied container ship “MSC Maria Laura” with 3,500 cubic meters of bonded LNG at Chuanshan Port Area, after the bunkering vessel received bonded LNG in Zhoushan.

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Zhejiang Province wraps up first cross-regional bonded LNG bunkering operation

Zhejiang Province on Saturday (27 June) completed its first cross-regional bonded LNG bunkering operation at Chuanshan Port Area of ​​Ningbo-Zhoushan Port, according to Hangzhou Customs. 

Bunkering vessel Hai Yang Shi You 302 travelled to ENN Zhoushan LNG receiving terminal to load bonded LNG. The vessel then supplied container ship MSC Maria Laura with 3,500 cubic meters of bonded LNG at Chuanshan Port Area. 

Zhejiang Province wraps up first cross-regional bonded LNG bunkering operation

Compared with the traditional single-port bunkering model, the cross-regional operation removes the geographical barriers between Zhoushan’s gas supply and bunkering demand in Ningbo’s core port area, enabling cross-port LNG transfer within the province.

“The new operating model addresses longstanding constraints associated with the geographical limitations of LNG supply reloading and tight operational time windows,” said Chen Bangkui, Business Manager at CNOOC Zhejiang New Energy Co Ltd. 

“We can now flexibly source bonded LNG from both Zhoushan and Ningbo, significantly improving operational flexibility and efficiency.”

 

Photo credit: Hangzhou Customs
Published: 6 July, 2026

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Battery

ICCT: China’s electric cargo ship fleet grows 950% in three years

In its latest blog, ICCT says vessel sizes for electric cargo ships have grown significantly, indicating that China is testing the feasibility of electrification for increasingly larger ships.

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July 6, 2026

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The International Council on Clean Transportation (ICCT) recently said China’s fleet of electric cargo ships has grown by 950%, from just four vessels in 2022 to 42 in 2025.

According to its latest blog, electrification is rapidly expanding along inland waterways in the country, offering a pathway to cut emissions, improve air quality, and lower operating costs.

ICCT said electric cargo ships are entering real-world operation at a rapidly growing pace

“Ship types have diversified, from bulk carriers and container ships to multi-purpose cargo ships. At the same time, vessel sizes have grown significantly, with the maximum deadweight tonnage (DWT) rising from around 3,000 tonnes in 2022 to approximately 14,000 tonnes in 2025,” it said.

“This indicates that China is testing the feasibility of electrification for increasingly larger ships.”

Although battery capacity constraints continue to limit sailing range per charge—which typically hovered between 150 km and 400 km from 2022 to 2025—trends show steady improvement; by 2025, electric cargo ships with a range of up to 500 km were already in operation in China.

Inland waterways have become the primary testing ground for electric cargo ship deployment. 

By the end of 2025, 86% of electric cargo ships in China were operating on internal rivers. 

“Nine provinces and municipalities have already launched pilot projects, covering major waterways such as the Yangtze River, the Pearl River, and the Beijing-Hangzhou Grand Canal,” ICCT added.

The blog also explored the opportunities, challenges, and policy actions that could accelerate the shift to electric inland shipping.

“Developing an enhanced subsidy that favors electric vessels, on top of the current vessel trade-in subsidy program, could help reduce the upfront investment burden for electric vessel adoption,” it recommended.

ICCT added that tightening ship engine emission standards toward world-leading levels could increase the compliance costs of conventional-fuel vessels and improve the relative competitiveness of electric ships.

“The electrification of inland shipping in China is already underway; what is needed now is smart policy to accelerate the transition,” it said.

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 6 July, 2026

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