The John Keells Holdings subsidiary saw a 6% year-on-year increase in bunker volumes and in base fuel prices, which both boosted the company’s revenue and profitability. Based on the company’s Annual report, it reported a 32% year-on-year rise in revenue and EBITDA for the period from 1 April 2018 to 31 March 2019.
The company reported that it aims to install a volumetric flow metre onboard its MT LM Nilwala bunker barge which it said was ‘aimed at improving service levels and delivering accurate quantity readings of the products’.
John Keells Holdings stated that its bunkering business will keep on focusing on increasing capability, storage capacity and efficiency in procurement practices.
The tanker MT Amelia, which was chartered during the year, increased overall import capacity by 12,600 metric tonnes per shipment, facilitating the importation of larger parcels at a lower cost per unit.
Also, according to the report, before the commissioning of the 3,000 metric tonnes bunker barge MT Kumana during the year under review, 66% of fleet is now double hulled, in compliance with global standards.
Moreover, the company announced its plans on seeking new opportunities at the Port of Colombo, which upgraded it services with a $25 million crane order, and port of Hambantota, where Sri Lanka recently got its first LNG bunkering simulator, giving priority on the bunkering and storage field. The company expects an increasing demand for bunkering services, mostly because of the growing activity in the area and the investments in the Southern and Eastern ports. Lanka Marine Services is reportedly the only bunker supplier in Sri Lanka to supply fuel oil via volumetric flow meters
In the meantime, the company believes that the appointment of Sinopec Fuel Oil Sales Co. Ltd to operate the bunker terminal at the Port of Hambantona will have plenty of advantages on the domestic bunker market and will provide benefits for Sri Lanka. The terminal will have a capacity of 74,000 cbm and is expected to be operational by 2020.
However, John Keells Holdings stated that the 2020 sulphur cap implementation could lead to challenges for fuel suppliers at the Port of Colombo. In light of the challenges that may arise from IMO’s regulations, SAFETY4SEA has provided an insight into complying with the sulphur cap.
Concluding, according to the company’s report
[IMO 2020] will be a significant challenge to both global shipping and bunker industries. The current facility at the Jaya Container Terminals Oil Bank in Colombo poses significant challenges in terms of storing both compliant and non-compliant fuel post January 2020.
