Latest figures released by Lewis Tankers show a much improved financial performance for 2011. Revenues grew 53% over the previous year to £11 million, and there was a 90% improvement in gross margin, which resulted in a break even at operating profit (after interest) – a turnaround of £450,000 from 2010. Performance is now ahead of the original five year business plan prepared by directors in 2009. New business with Kuwait, World Fuel Services, Univar, and Brenntag, contributed to revenue growth, while the company has implemented a new operational control system, which has led to significant efficiencies. During the year the company restructured its management team to improve market focus by bringing together operational and commercial responsibilities. As with the previous two years, business started poorly in 2012 due to unseasonal good weather, which affected volumes in fuel distribution, especially in Scotland. However, trading in other sectors has remained strong and the company expects to hit its financial targets. Managing director Stewart MacDonald commented: “We’re pleased with our 2011 performance and are confident that we can continue to successfully develop the company. We continue to sign new business and our pipeline remains very strong for the balance of the year and beyond. With that in mind we are continuing to invest in new people and new vehicles. Staff numbers have grown from 108 to 120 and our tanker fleet has increased from 71 to 85. “Probably the biggest challenge now facing us is to determine our geographical strategy. Increasingly, we’re producing new business opportunities outside our traditional operating locations in the north of England and Scotland, and we need to find sensible solutions – probably by small-scale acquisitions.” http://www.lewistankers.co.uk/

Stolt-Nielsen has announced the acquisition of a storage terminal at Dagenham from Norbert Dentressangle. Completion is subject to the transfer of licences and permits, and the receipt of necessary approvals to operate the facility.  The transaction is expected to close during the company’s fourth quarter of 2012.  The terminal consists of 195 tanks with a total of 134,000cbm. Walter Wattenbergh, president of Stolthaven Terminals, said: “This terminal, our first in the UK, joins Stolthaven’s growing global network of bulk-liquid storage facilities.  The Dagenham terminal gives us a foothold in the UK market and will provide added support to the Stolt Tankers’ inter-European coastal fleet.  Our initial plans include an immediate upgrade programme, with the decommissioning of several old tanks and the construction of new tanks.” http://www.stolt-nielsen.com/

Craggs Energy managing director, Chris Bingham, and new depot manager Jeremy Cosway Craggs Energy has become the new owners of the Samuel Cooke and Co depot, based in Padiham. Last month came the sad news that the Burnley based fuel distributor Samuel Cooke & Co, had gone into administration resulting in the loss of over 80 jobs. Craggs Energy, an independent fuel company based in Hebden Bridge, has taken over the depot and launched the business in the Lancashire area using the local knowledge of two former Samuel Cooke and Co employees. Craggs Energy managing director, Chris Bingham, explained: “We have built our business by using experienced staff and delivering high levels of customer service at a fair price. Opening a depot in the Burnley and Pendle area means we can extend this promise and provide the local area with a family run local company they can trust to take care of their fuel requirements” Jeremy Cosway, ex depot manager, and Ben Duckworth, ex marketing manager, of Samuel Cooke and Co have both joined the team  to launch the new Padiham site. Jeremy Cosway said: “I worked at Samuel Cooke and Co for six years and I was the depot manager for two of those. It was sad to say goodbye but I’m really happy that I can continue my career in Padiham and continue to focus on the local area”. Ben added: “I was really disappointed when Samuel Cooke and Co Ltd was forced to close, but thanks to Craggs Energy, we can continue our efforts of serving the Burnley and Pendle area out of the well-known Padiham depot.”www.craggsenergy.co.uk

The joint administrators of Petroplus Refining & Marketing have published their first progress report on the administration, which illustrates the depth of the financial challenges faced in continuing to operate the Coryton refinery. The report provides creditors with a detailed description of progress that has been made in the six months since the appointment of the administrators. Trading losses from refining during the six-month period of administration are currently estimated at $22m-$31m, on sales of some $347m. Of this loss, some $20m relates to capital expenditure incurred and written off in the period. The report also states that an extensive exercise to obtain the best value for creditors from the sale of Coryton found that offers to run the site as a refinery were materially lower than for an alternative use. It is currently estimated that the net funds available for distribution to unsecured creditors may be in the order of $102m-$135m. Gross realisations from the assets of the company are projected to be $199m-$209m. Steven Pearson, joint administrator and PwC partner, said: “This has been an exceptionally difficult administration. The information we have published today illustrates the scale of financial and operational challenges we faced in operating the refinery for nearly six months. “The unfortunate reality is that, despite rigorous cost control, the refinery incurred significant losses from operations between January and June. This high risk, low reward environment was the main driver in having to cease operations – put simply, we could not afford to incur the ongoing losses associated with continuing refining.”

DCC has reached agreement to acquire BP’s LPG distribution business in Britain. Completion of the acquisition is expected to take place at the end of September 2012. The deal is worth approximately £40.5m, to be satisfied at completion, after the net tangible operating assets of the LPG business were valued at approximately £30m (€38m) on 31 December 2011. The Bristol-based business currently supplies a wide range of industrial, commercial and domestic customers with an annual volume of approximately 87,000 tonnes of bulk and cylinder LPG. It has 116 staff and operates from a network of 13 locations throughout Britain with a fleet of 62 delivery vehicles. Haulage services are principally outsourced. Flogas, DCC’s existing LPG arm in Britain, has annual sales volumes of approximately 190,000 tonnes. Tommy Breen, DCC chief executive, said:  “We have a successful track record in acquiring energy distribution businesses from the oil majors as they exit downstream activities. This transaction will enhance DCC’s position as the leading oil and LPG sales, marketing and distribution business in Britain.” www.dcc.ie

Former conquerors of Kilimanjaro, the Crown Oil team are now tackling their latest challenge Burnley based fuel and lubricants distributor Samuel Cooke has been ‘rescued from the administrator’, after the acquisition of key assets by Crown Oil. Crown Group managing director, Matt Greensmith, explained, “We will continue to trade under the Samuel Cooke name and we can assure existing customers a flawless continuity of service.  The Crown and Cooke businesses have many similarities, both being long established, independent and family owned firms that have built sound reputations based on high and consistent levels of service.” A handful of Cooke’s former employees have already found employment with Crown Oil who are hopeful that there will be more opportunities as the business is consolidated. Staff at Cooke’s had previously been informed that all jobs would be lost as the company went into administration. Crown Oil general manager, Mark Andrews, said: “We will offer same day or next day emergency deliveries where required with programmed fuel delivery for larger customers.” Cooke customers will have access to a wider range of advanced low carbon fuels and speciality lubricants.  In line with Crown’s environmental commitment all Samuel Cooke’s delivery mileage by road tankers will now be fully carbon offset.http://www.crownoiluk.com/

Frank Carroll, chairman and owner of Samuel Cooke & Co Burnley based fuel distributor Samuel Cooke & Co went into administration in late July. The company’s staff were informed on 23 July that the majority of the 86 jobs had been lost as a result, although 12 were retained to assist the administrators. Some customer dealings are now being investigated by the police, although no further details are currently available. Administrator Paul Flint said: “The business suffered an unexpected loss in relation to a specific group of customers that impaired asset value and, as a result, placed the business under a significant cash strain. “The directors reported this position to the police, and it remains under investigation.” “Regrettably, despite the best attempts of the directors to recover from the situation, they have been unable to find a solvent solution to allow the businesses to continue to trade.” A statement on the company’s website read: “Paul Flint and Brian Green were appointed joint administrators of Samuel Cooke & Co Limited on July 23 2012. The company has ceased to trade with immediate effect and the assets of the company are being earmarked for sale.”

Steven Reeve, driver (l) and Russell Fairchild, operations director of WP Group WP Group has announced the acquisition of local fuel distributor Upton Oil Company. Based in Poole with depots across the south including Ringwood and Dorchester, Upton Oil Company specialises in supplying a local, friendly service to heating oil users, the farming community and commercial customers. David Fairchild, managing director of WP Group, commented: “This acquisition is beneficial for both parties as it brings together a wealth of experience and knowledge from both sides. I have always respected Upton Oil Company’s customer loyalty and hope to further improve the service they receive by utilising WP Group’s extensive infrastructure across the south coast.” He added, “The business will continue to trade under the long established Upton Oil Company brand and will service the existing customer base, who will not notice any disruption to normal service.” www.thewp-group.co.uk

Andrew Owens, chairman of Greenergy Greenergy has announced the purchase of assets at the former Petroplus facility in Teesside from the joint administrators of Petroplus Refining Teesside Ltd, PwC. The Seal Sands based terminal, previously operated by Petroplus, ceased commercial operations shortly after the company went into administration earlier this year. Greenergy has been supplying customers in the region from the nearby Vopak terminal, where it has invested in fuel manufacturing, storage and distribution facilities. Andrew Owens, Greenergy chief executive, commented: “The north east is an important hub in our UK fuel infrastructure platform and an area where we have significant sales volume. We will continue to manufacture fuel and supply our customers from the Vopak facility. Once it has been developed, this new site will be integrated into our existing north east system to give additional product and manufacturing capability. This strategic infrastructure investment follows Greenergy’s recent acquisition of assets at the Coryton refinery in a joint venture with Vopak and Shell.” The terminal will remain closed for commercial supply over the next few months while development plans for the site are drawn up in cooperation with the relevant authorities. The plans will include the construction of a new rail head, making Teesside the hub of Greenergy’s rail distribution network.  This will allow efficient movement of fuel between Teesside and other UK locations by rail, rather than road or ship. The existing 20 staff will be retained, and will assist in the development planning.

DCC Energy UK’s acquisition of several heating and transport fuel distribution businesses, including Butler Fuels, has been provisionally cleared by the Competition Commission (CC). The case was referred by the Office of Fair Trading (OFT) in April, and the final report is expected to be published by the CC by 18 September 2012. DCC bought the businesses in September 2011 from Rontec LLP, which had previously bought them from Total Downstream UK in June 2011. In its findings, the CC has provisionally stated that customers supplied by the various businesses would not be adversely affected by a decrease in competition, as a result of the deal. Chairman of the DCC/Rontec Inquiry Group and CC deputy chairman, Simon Polito, commented: “Central to our decision has been the effect on customers requiring small-scale deliveries across a number of sites, and whether they would be likely to use a number of different suppliers as an alternative to a single supplier with nationwide coverage. We found that these customers are generally quite sophisticated in their purchasing practices. A number of them already multi-source and are also prepared to switch in response to a price increase, so we decided the impact of the merger on these customers would be small.” http://www.competition-commission.org.uk/

Topaz CEO John Williamson, former Ireland rugby international, Alan Quinlan, and Rebecca Rushe, Aware’s head of fundraising, pictured at the launch A major partnership between Topaz and Irish charity, Aware, was launched by former Ireland rugby international Alan Quinlan.

  Keyfuels has appointed Laura Balmforth as its new marketing executive. Laura will be working closely with the company’s management and sales teams to help develop strategies for ongoing business growth, building strong partner and customer relationships and helping to identify new opportunities. Managing director, Peter Bridgen, said: “It’s an extremely exciting time. Over the last few years we’ve increased our network by more than 50%, providing the largest wholesale priced network in the UK. Our market position has been built up on the strength of this network coupled with our ability to work in partnership with our customers to develop fuel management strategies that make a real difference to their bottom line. “Laura’s appointment highlights our ongoing investment in people as well as our commitment to providing a first class customer service.” For the second year running, Keyfuels, which employs over 50 people at its Walsall headquarters, has achieved one to watch status in the Best Companies accreditation scheme. Peter McCarthy, service and operations director, commented:  “This award is very special to us as it is based entirely on staff feedback.  We understand that the biggest assets any company can have are its people and we work hard to ensure that we communicate effectively with all staff.” www.keyfuels.co.uk.  Return to emailshot

The world’s largest oil trader, Vitol has teamed up with Marcel Van Poecke, co-founder of Petroplus, to buy the Cressier refinery in Switzerland. Petroplus administrator, Wenger-Plattner reported last week that Varo Holding SA – the joint venture between Vitol and Van Poecke’s AtlasInvest – had agreed to buy the Cressier plant and will complete the transaction by the end of June.   The move is seen as part of the Vitol’s drive to expand into physical assets. The 68,000 barrel per day plant will resume activities after the handover is completed, added the administrator, dismissing the suggestion that the plant will be converted to storage. A quality, niche refinery, storage assets and wholesale marketing opportunities Vitol’s chief executive, Ian Taylor, said that the transaction provides the company with access to a “quality, niche refinery and a supply chain of storage assets and wholesale marketing opportunities.” He predicted that it would become a valuable source of growth for the Vitol Group. Varo’s main rival for the Cressier plant was strongly rumoured to have been former Russian energy minister, Igor Yusufov, via his investment arm, Fund Energy. Coryton Marcel Van Poecke, who founded Petroplus in 1993, and oversaw its operations for 13 years, has also been involved in offering a temporary lifeline at Coryton. Fuel Oil News contacted PwC, administrators for Coryton yesterday and can report that there is no further comment at this time.  Bids closed on 2nd April.  Gary Klesch is rumoured to be among those interested. Yesterday a crude oil tanker was heading for Coryton.  Does this mark the end of the three month rescue deal or the start of a new one? Antwerp Swiss-based trader Gunvor has completed the acquisition of Petroplus’ Antwerp plant in Belgium which will restart in the next few days after a four-month outage Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

Concerned that the merger of Total Butler and GB Oils would remove a key competitor to GB Oils; the Office of Fair Trading (OFT) referred the acquisition to the Competition Commission just before Easter.   In England and Wales, GB Oils has 100 depots whilst Total Butler has 40. Both supply a similar range of oil products to domestic, commercial and agricultural customers.   Of particular concern to the OFT is the supply to customers who require deliveries across multiple sites, but whose volumes are too small for them to be viably served by the major oil companies or by oil traders.   “Although there are a large number of oil distributors operating in theUK, three of them stand out in terms of the scale of their networks: the two merging parties and Watson Fuels,” said Amelia Fletcher, OFT chief economist and decision maker in this case.   “A significant number of multiple site, non-bulk customers, who need suppliers with access to such infrastructure, were concerned at the prospect of a merger of GB Oils and Total Butler. We consider that the Competition Commission should look in detail at the impact of the merger on these customers, as well as whether the merger may result in higher prices for customers buying oil products in specific local areas where the parties overlap.”   The Competition Commission is expected to report on the case by 18th September 2012.