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NewOcean records USD 304.3 million loss, portion of SG bunkering business to remain

‘A portion of our marine bunkering business in Singapore will remain, with a focus on oil products of relatively stable gross profits and high sulphur fuel oil,’ it said.
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New Ocean Energy 1

Hong Kong-listed NewOcean Energy Holdings Limited (NewOcean) on Wednesday (31 March) reported in its unaudited financial year 2020 results (FY 2020) that its gross profit margin derived from oil bunkering business has been substantially reduced or turned into gross loss margin due to COVID-19 and the slump in global oil prices in first half year of 2020.

The group said its overall gross margin for oil products and electronic components decreased to 1.0% as compared to 6.8% last year.

The group recorded net loss of HKD 2.366 billion (USD 304.3 million) during FY 2020, mainly due to the drop in gross profit and additional impairment provision for goodwill, intangible assets, trade receivables, other receivables, inventories and property, plant and equipment, etc.

Its revenue for the year decreased by around 30.99% to approximately HKD 19.180 billion attributed primarily to the fall in average price of energy products as well as the drop in total sales volume. In FY 2019, NewOcean saw HKD 27.791 billion in revenue.

The group’s sales volume for energy products fell to approximately 5.64 million metric tonnes in 2020 compared to 7.51 million metric tonnes in 2019. 

Specifically, the company’s oil products business generated total sales revenue of HKD 224.1 million with a gross margin of 2.04% in FY 2020 compared to HKD 848.2 million revenue and a gross margin of 4.4% in FY 2019.

For the past twenty years, NewOcean said it has always kept up its obligations and has never breached any debt covenants. However very unfortunately, from April 2020 onwards, a series of unexpected negative events caused banks to freeze the group’s credit and request for early repayment.

The pandemic, slump in oil prices, and the stand-off between China and the United States seriously affected the group’s business especially the oil bunkering business in Hong Kong and Singapore and the electronic business in the People’s Republic of China.

As a result, the gross profit margin derived from oil bunkering business and electronic business has been substantially reduced as compared to last year or in certain cases turned into gross loss margin.

Due to severely unfavourable market conditions, some of the group’s key competitors in the oil products market sold large lots of inventory at bargain prices to cash in during March and April.

NewOcean said it was a tough decision to for the group to reluctantly follow suit and slash prices under the pressure of its mounting inventories over the successive months, resulting in a steep dive in its overall gross profits for energy products.

Adverse market sentiment also caused its oil product clients to delay the repayment of trade or other receivables to a significant extent; for which, an allowance for impairment loss of about HKD 760 million had been made.

In 2020, more than 10 monohull [single hull] oil tankers had been written off due to a change in the specifications of oil tankers in  Mainland China, and the group had shut down a number of auto-gas refueling stations because of the decreasing demand, resulting in a loss of approximately HKD 120 million for the disposition of the above fixed assets.

With limited liquidity from to the lack of support from banks to back its business NewOcean said it decided to scale down both its marine and on-land bunkering businesses; and hence, an allowance for impairment of approximately HKD 420 million was made at the end of the year.

Additionally, due to the crash of Hin Leong Trading (Pte.) Ltd. and the slump in global oil prices during the first half of 2020, many banks had extended requests to the group limit or terminate the utilization of letters of credit and other short-term credit facilities.

In order to ease pressure on liquidity and improve the financial position of the group, NewOcean’s directors implemented a range of measures, including opening negotiations with banks which resulted in an agreement for debt restructuring.

“With the significant scale-down of our oil products business, we are committed to focus not only on the sales of products with high gross profits, but also on lowering our operating costs,” said NewOcean.

“As the costs of refueling business in Hong Kong are relatively high, the group will step up its efforts to sell wholesale to our clients who are distributors, and to lease its existing oil tankers to wholesalers or list them for sale.

“As to our business in Singapore, a certain extent of the marine bunkering business will remain, with oil products of relatively stable gross profits and high sulphur fuel oil being the key focus of the business. 

“Meanwhile, the group will take the occupancy of a small portion of a total leased capacity of 300,000 tonnes in a floating storage unit, while the remainder will be leased to third parties to keep running costs down.”

Related: NewOcean Energy issues USD 304.8 million net loss warning ahead of FY 2020 results
Related: NewOcean proposal to adjourn court scheme meeting approved by creditors
Related: NewOcean creditors meeting application granted by Supreme Court of Bermuda
Related: NewOcean planning creditors meeting, foundation of debt restructuring plan laid out
Related: NewOcean records USD 174 million 1H 2020 loss; Singapore bunkering business remains
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
Published: 1 April, 2021

 

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Winding up

Singapore: Annual general meetings scheduled for Xihe Holdings subsidiaries

Annual general meetings of companies/creditors will be held electronically from between 21 July to 5 for 11 subsidiaries of Xihe Holdings.

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July 7, 2026

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Several notices were published on the Government Gazette on Tuesday (26 May) regarding the annual general meetings of the companies and creditors to be held electronically from between 21 July to 5 August for 11 subsidiaries of Xihe Holdings. 

Annual general meetings for Xin Dun Shipping are to be held on 21 July at the following time:

  • For the company and creditors: 4pm

Annual general meetings for Xin Ya Shipping are to be held on 24 July at the following time:

  • For the company and creditors: 3pm

Annual general meetings for Xin Chun Shipping are to be held on 21 July at the following times:

  • For the company: 2pm
  • For the creditors: 3pm

Annual general meetings for Nan Sia Maritime are to be held on 24 July at the following time:

  • For the company and creditors: 2pm

Annual general meetings for Nan Hai Maritime are to be held on 23 July at the following time:

  • For the company and creditors: 3pm

Annual general meetings for Hua Xin Shipping are to be held on 4 August at the following time:

  • For the company and creditors: 3pm

Annual general meetings for Hua Kang Shipping are to be held on 23 July at the following time:

  • For the company and creditors: 2pm

Annual general meetings for Hua Gang Shipping are to be held on 4 August at the following time:

  • For the company and creditors: 2pm

Annual general meetings for Hua An Shipping are to be held on 22 July at the following time:

  • For the company and creditors: 4pm

Annual general meetings for Dong Fang Shipping are to be held on 22 July at the following times:

  • For the company: 2pm
  • For the creditors: 3pm

Annual general meeting for Nan Ya Maritime is to be held on 5 August at the following time:

  • For the company: 2pm

The agenda for all the meetings are:

  • To receive an update on the liquidation.
  • To receive an account of the Liquidators’ acts and dealings, and of the conduct of the winding up.

The following are the details of the liquidator: 

Ho May Kee
Liquidator
c/o 8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960

 

Photo credit: Benjamin Child
Published: 7 July, 2026

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Methanol

CRI delivers world’s largest e-methanol reactor to Liaoyuan project in China

First phase of the project has a production capacity of 170,000 mt of renewable methanol annually, supporting demand for low-carbon fuels in shipping, chemicals, and other sectors.
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CRI delivers world’s largest e-methanol reactor to Liaoyuan project in China

Carbon Recycling International (CRI) has recently delivered the largest of its kind e-methanol reactor for the Liaoyuan E-Methanol Project in Jilin Province, China. 

CRI, a company that develops and deploys technology that converts carbon dioxide emissions into renewable methanol, said the delivery and successful installation of CRI’s proprietary methanol converter reactor is a major construction milestone. 

“The project continues to progress according to plan toward commissioning and start-up later this year,” it said. 

The Liaoyuan project is being developed by CRI’s client Tianying Group (CNTY) and once commissioned will become the largest e-methanol facility in operation globally. 

The first phase has a production capacity of approximately 170,000 metric tonnes (mt) of renewable methanol annually from green hydrogen and captured biogenic carbon dioxide, supporting the growing demand for low-carbon fuels in shipping, chemicals, and other sectors seeking practical and scalable pathways to decarbonisation.

The methanol converter reactor forms the core of CRI’s proprietary Emissions-to-Liquids (ETL) technology. Designed and supplied by CRI, the reactor is where renewable hydrogen and captured carbon dioxide are converted into renewable methanol through the company’s proven industrial-scale process. It has been specifically designed and constructed with operational flexibility as a key feature and represents the third generation of CRI’s e-methanol reactor design.

The successful installation represented a significant construction milestone and marked the transition to the final stages of project execution.

“The installation of the methanol converter reactor is an important milestone for both Tianying and CRI,” said John Milner, Project Manager at Carbon Recycling International. 

“The reactor is the core of our ETL technology and embodies nearly two decades of innovation, engineering development, and commercial operating experience. Seeing this equipment installed at one of the world’s most ambitious renewable energy projects is a proud moment for our team and a major milestone as the Liaoyuan facility advances toward commissioning and start-up.”

CRI’s technology is already deployed at commercial scale at the company’s reference plants in Anyang and Lianyungang, and the Liaoyuan project represents the next step in the continued deployment of carbon recycling technology to support the production of renewable fuels and chemicals.

 

Photo credit: Carbon Recycling International
Published: 7 July, 2026

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Business

Bunker Oil inks four-year bunker fuel supply deal with Norwegian Defence Materiel Agency

Framework agreement, which entered into force on 1 July, is for the supply of fuel to vessels belonging to the Navy, Coastal Hunter Command, Coast Guard and Governor of Svalbard, among others.
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July 7, 2026

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Bunker Oil inks four-year bunker fuel supply deal with Norwegian Defence Materiel Agency

Norwegian marine fuel supplier Bunker Oil on Friday (3 July) said it has signed a new four-year framework agreement with the Norwegian Defence Materiel Agency for the supply of marine fuel.

The fuel will be supplied to vessels belonging to the Navy, the Coastal Hunter Command, the Coast Guard, the Governor of Svalbard, the Norwegian Coastal Administration, the Institute of Marine Research and the Norwegian Defence Research Establishment, among others.

The new agreement entered into force on 1 July, following the expiry of the current agreement on 30 June 2026. 

The agreement covers the delivery of fuel from Bunker Oil’s plants, tankers and tankers along the entire Norwegian coast – from Kirkenes in the north to Egersund in the south.

The company said Bunker Oil’s strong presence along the coast has been a decisive factor. 

“The authorities have signalled increased activity and presence from the Navy and the Coast Guard in the waters off Troms and Finnmark,” the company said.

“With large facilities in Kirkenes, Båtsfjord, Honningsvåg, Hammerfest and Tromsø, in addition to several smaller facilities, Bunker Oil is well equipped for increased activity in the High North. The facilities in Tromsø, with their proximity to Olavsvern, will be particularly important during the agreement period.”

The deliveries will vary in size – from a few thousand litres for the Coastal Ranger Command’s smaller vessels, to several hundred cubic metres for the Navy’s other fleet.

The contract’s financial framework is estimated at NOK 1.2 to 1.5 billion (USD 122.59 million to USD 153.24 million), and the agreement will have a major impact on activity at Bunker Oil’s facilities along the entire coast.

A renewal of the Navy’s fleet is also underway, and Bunker Oil said it is looking forward to supplying fuel to the new vessels as well.

“We look forward to four more years as a supplier of fuel to the Norwegian Defence Materiel Agency,” said Tore Slinning, contract manager at Bunker Oil.

“The agreement is of great importance to Bunker Oil, in addition to the fishing fleet, which is still by far our largest and most important customer group.”

 

Photo credit: Bunker Oil
Published: 7 July, 2026

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