Oil tanker to become Asia’s refuelling hub
Srei Infrastructure Finance Limited (Srei) is working on to increase its riskweighted returns by way of expanding co-lending business with the banks. The move aims at mitigating the adverse impact of economic slow-down. This strategy seems to have paid off, enabling the company being on the path of profitability albeit with a thinner margin. Srei on Monday notched up a consolidated profit after tax (PAT) of Rs 55.37 crore during the September quarter compared to Rs 110.97 crore in the year-ago quarter.
The company's consolidated PAT was at Rs 98.04 crore in the first six months of this financial year against Rs 250.52 crore in the same period last year.
"Our strategy during the quarter was to constantly increase the co-lending business along with banks, so as to augment our riskweighted returns. In the present environment of slow economic growth we have been growing carefully, protecting our margins.
We hope that by the last quarter of the year, infrastructure projects will be announced by the government in a substantial manner," said Hemant Kanoria, Chairman, Srei.
Srei Infra’s total consolidated income for the quarter stood at Rs 1,424.18 crore as against Rs 1,537.43 crore recorded during the yearago quarter.
A Euronav NV-owned supertanker anchored along Asia’s busiest shipping route is set to become a refueling hub as the company seeks to secure cheaper fuel for its fleet ahead of new industry rules.
The Oceania, one of the world’s biggest oil carriers, will serve as a floating storage and distribution centre for marine fuel in waters off Kuala Linggi International Port on Malaysia’s west coast. The port will be Euronav’s hub for low-sulphur fuel and marine services in the region, according to an agreement signed Tuesday with T.A.G. Marine Sdn Bhd., the port operator.
The ultra-large crude carrier with capacity of about 3 million barrels arrived off Malaysia in late-September laden with low-sulphur fuel after beginning her 12,400-mile (19,955-kilometre) journey from the Mediterranean Sea in August. Her presence in Asia will provide Euronav’s fleet with a ready supply of shipping fuel ahead of the new IMO 2020 standards that take effect Jan. 1, which could prompt a scramble for low-sulfur barrels and push up prices.
While refueling activities are typically carried out from onshore terminals and tanks in bunker ports across Singapore, Malaysia and China, the Oceania will serve as a floating storage hub. The tanker has anchored off the port with 3 million barrels of 0.2 per cent and 0.5 per cent low-sulfur fuel oil, T.A.G. Marine said in a statement.
The port operator’s agreement with Euronav is a shot in the arm for Kuala Linggi port, known as Sungai Linggi, as most vessels traversing the Malacca Strait typically choose to refuel in Singapore or Port Klang in Malaysia.