Companies 25

News

Craggs Energy takes over Samuel Cooke and Co depot in Padiham

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

News

GB Oils appoints new regional manager in south east Anglia

New regional manager for south east Anglia, Keith Durrant GB Oils has appointed Keith Durrant as regional manager in south east Anglia, to manage the new Pace Fuelcare depot in Ipswich. Keith, who has lived much of his life in the local area, brings a wealth of business experience to the role, having held several senior managerial positions with companies such as ICI, Burmah – Castol and Total. Keith joined GB Oils two years ago. His primary objective in his new role will be to stimulate organic growth and elevate the Pace brand to become the first choice for customers across the region. The area includes oil distribution depots in Shefford, Letchworth, Cambridge, Braintree, and Hadleigh, plus the newly constructed multi million pound terminal in Ipswich. Simon Willis, general manager at GB Oils, commented: “Keith’s appointment to manage the business in south east Anglia comes following his successful work for the company during the past two years. We have no doubt that he will be fantastic in this new role and will help deliver our ambitious plans for the new depot and wider area.” Keith added: “As well as providing competitive pricing and continuous improvements to services, my aim is to ensure we continue to deliver exceptional standards of customer satisfaction, whilst remaining at the forefront of fuel distribution, both within east Anglia, and throughout the UK”.

News

Petroplus administrators reveal scale of Coryton’s financial woes

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.”

News

DCC to acquire BP’s LPG business in Britain

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

News

Crown Oil announces acquisition of Samuel Cooke

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/

News

Samuel Cooke & Co in administration

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.”

News

WP Group confirm acquisition of Upton Oil Company

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

News

Greenergy purchases terminal assets in Teesside

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.

News

DCC acquisition provisionally cleared

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/

News

GB Oils appoints manager for new London region

Alex Ward GB Oils has appointed Alex Ward as London regional manager. The area has been recently established as a new operating region to better serve customers in the capital. As part of his new role, Alex will be responsible for leading the business in London, including the Pace Fuelcare barges on the River Thames. His primary objective will be to stimulate organic growth and elevate the Pace brand to become the first choice for customers. Alex has worked for the company for 12 months, previously as regional manager for GB Oils in the South East. He said: “As well as providing competitive pricing and continuous improvements to services, my main aim is to ensure we continue to deliver exceptional standards of customer service.” Simon Willis, general manager at GB Oils, added: “We have no doubt that he will be a fantastic addition to the team and will help deliver our ambitious plans for this new region.”

News

Topaz, Aware and Ireland legend Alan Quinlan promote positive mental health

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.

News

One to watch – Keyfuels invests

  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

News

Oil trader expands into physical assets

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

News

Total Butler acquisition under scrutiny

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.  

Interview

Morrow Fuels – goes the extra mile

Next year, the Morrow family celebrates 100 years of oil retailing in Lisburn, Northern Ireland. And throughout the decades, the business, which eventually became Morrow Fuels, has proudly guarded its family ownership and has striven to live up to its long-established reputation – to go the extra mile to meet customers’ needs; Peter Clayton reports “Oil retailing has been in the family since1913, when Colin Morrow’s great aunt sold paraffin from her village shop for lamps and heaters,” says a member of the most recent generation of Morrows to run the business, Jonny. “Her shop was in the exact location still used today as Morrow Fuels’ main depot – at Gravelhill Road, Maze.” Colin Morrow originally began as an engineer, manufacturing steel oil tanks for the domestic heating market. He saw his natural progression as moving more into the oil market, and bought his first distribution tanker in 1988. As the company became established, Colin’s wife Joan and their three sons – Jonathan (Jonny), Simon and Phillip – all joined the business. “Because of the housing boom during the 1990s, we enjoyed rapid growth and steadily grew our tanker fleet from one in 1988 to 11 in 2012,” adds Jonny. The most recent addition to the Morrow fleet is a specially designed 4×4 tanker which can cope with the extremes of weather, and the very worst of terrain. “Last year’s extreme weather caused so many people in Northern Ireland to go without oil,” explains Jonny.  “Houses off the beaten track stayed cold as regular oil tankers just couldn’t get to them. This meant many people had very little heating during one of the coldest winters we have seen in years.” It was this – combined with the company motto – which prompted Morrow Fuels to invest in their new custom-built vehicle which, claims Jonny, allows the company to deliver fuels whatever the weather and regardless of challenging landscapes. A convertible oil tanker? “When we had a press launch for the new truck, with the tagline ‘service you can trust’, we had a great response from the public and customers alike. Of course, Murphy’s Law would have it that Northern Ireland has had virtually no snow or ice this winter, and has even experienced record high temperatures for February! So for next year, the Morrow boys are thinking about building a convertible oil tanker!” jokes Jonny. As is shown by this latest vehicle, the Morrow family know their tankers. In fact, to complement the rest of the business, Morrow Fuels diversified into tanker building some 20 years ago when it became apparent to the family that there was an urgent need for quality built oil tankers in the principality, in fact they were the first company in Northern Ireland to build their own tanker barrels from scratch. This part of the business has recently enjoyed a record number of sales, and Jonny – an engineer by background – is looking forward to another good year. Just about to go live is their new website www.morrowtankerservices.com. As distributors, Morrow Fuels operates within a 30 mile radius of its main depot at Maze, close to Lisburn, with satellite depots in Belfast and Bangor. Around 80% of company business is supplying domestic customers. The remaining 20% is split evenly between agricultural and commercial customers.   The state of the industry Asked about how he perceives the current fuel distribution industry in Northern Ireland, a thoughtful Jonny replied: “The biggest problem we can see with the current market is that anyone can buy a tanker for around £5000. Along with a pay-as-you-go mobile phone, they can start an oil distribution business – undercutting rates and poaching valued customers.” Jonny is convinced that the Irish distribution industry is currently going through its hardest period of trading for decades. “Seasonal temperatures are too high, oil prices are still rising, and the economy is struggling more than ever,” he says.  “Added to this, margins are getting tighter and tighter, vehicle fuel and insurance costs are all on the up, and more and more one-man-band operators are getting into the business with little or no knowledge of the industry. “But on a brighter note,” he concludes, “We’re still experiencing some growth… not on the scale it once was, but in a diminishing market, threatened by natural gas and renewable energies, any growth at all has to be considered good. We find that, although customers always want cheaper and cheaper fuel, they still appreciate a good quality product and ‘service you can trust’…  after all, we do go the extra mile to meet their needs.”

Interview

Thompson Fuels – providing service with a smile

With a company slogan, “more smiles per gallon”, Northern Ireland based Thompson Fuels has established a reputation as a happy and helpful team, willing to go the extra mile (and smile!) for customers. The company has evolved during the years. It was established in 1968 to provide a coal delivery service. Ten years later, the family business diversified into oil sales, starting off with one oil delivery lorry and one employee. Thompson Fuels was registered as a limited liability company in 1993, although it remained a truly family-run business – as it is today, with three sibling directors: Mark, David and Aaron Thompson. Since then, the customer base has steadily grown. The company now has 15 tankers and a full-time staff of 30, operating out of five depots. For its domestic customers alone, Thompson has an annual throughput of more than 20 million litres. “We strive to maintain a modern fleet of lorries with well trained, motivated staff,” says Aaron Thompson. “As you can imagine, our business has changed considerably over the years – from coal and bottled gas deliveries being our original main lines of business, to oil fired central heating fuels taking over. However, how things change… coal sales have significantly increased again in recent years.” Although the company focuses on domestic customers, Thompson also deals with both commercial and agricultural clients. And the Thompson “patch” is considerable – covering an approximate 20 mile radius from each of its five depots, located in Tandragee, Portadown, Banbridge, Markethill and Fintona, as well as Belfast and the surrounding areas. Responding to market demand, Thompson has also diversified into selling lubricants and has recently become a Maxol lubricant agent. “We also retail decorative garden stones for flower beds and rockeries during the quieter summer months,” continues Aaron. “And we still maintain a successful coal sales department, which we have developed and grown over the years – from importing and packing our own stock, to supplying retailers and carrying out our own delivery and cash ‘n carry services which we operate out of all our depots. Emergency run-out service “Our depots also operate an ‘emergency run-out drum’ service, which has proved to be very popular with the public; they tell us this is very convenient as they can get as much or as little as they need.” It has always been part of the company’s ethos to provide the service – and a little more – expected by its customers. “As distributors with a reputation for providing a dependable service to the public, we have to be able to adapt and cope with anything – especially when demand is at its highest during the winter months,” says Aaron. “With a reliable, competent staff – and storage capacity in excess of one million litres – we are well equipped to meet public demand, regardless of winter weather conditions. “We always try to encourage our customers to buy early in the winter, before the cold weather sets in. However, it doesn’t always happen. We find that most customers now tend to buy as and when they need it.” Aaron believes that the oil distribution industry has changed over the years, becoming a lot more competitive due to the constant fluctuation of oil prices. But, with so many years experience in the sector, he is philosophical about the future. “As a business, we believe you have to be competitive, but not at the cost of profitability,” he says. “We don’t get distracted by what our competitors are doing… we are focused on our own business and concentrate on giving our customers top quality fuel and service at the best possible price! And by doing exactly that, we provide our customers with more smiles per gallon!” www.thompsonfuels.com  

Interview

Doherty Oils – fail to plan, plan to fail

Last winter’s weather conditions throughout the island of Ireland were unprecedented with sudden and long-lasting frozen spells – accompanied by thick snow and treacherous road conditions. In the thick of it – literally – were home heating fuel distributors who struggled, but in most cases doggedly persevered to provide a lifeline for customers in some of the most remote and wild locations “This year, we’re getting better prepared,” says Patrick Doherty, director of Doherty Oils which operates a fleet of five oil delivery tankers, distributing fuel throughout the Tyrone and Fermanagh areas. “If we’ve learned any lessons from last year, it would be to have all of our trucks psv’d and well maintained. “We’ve also decided to put our own 40 foot lorry on the road to haul fuel direct from the terminals,” he explains. “We have an excellent haulier – Lisburn-based Pettrans – who bring 95% of our fuel at the moment, but in the busy period even they find it very difficult to care for all customers, as any haulier would. Competitive prices “We’ve installed two extra 55,000 litre kerosene tanks and have just got permission to store our own petrol underground, so that we can supply the local filling stations direct from our depot in Omagh. This is all at a cost, so we‘re hoping for another winter like last year!” he adds. “But our strong relationship with a range of major oil suppliers ensures customers consistently receive highly competitive prices.” Big or small, all fuel distributors throughout Ireland learned important lessons from last year’s experience. Topaz – with the largest network of home heating oil distributors in the country, and a fleet of more than 250 tankers – is no exception. The company is incorporating many of those lessons into its strategic planning for the 2011/2012 winter period. Marketing activity will focus around reminding people to order early, and the company’s product offering has diversified to cater for both the worsening economic and weather climates. Topaz Thermal is a premium home heating oil with a special additive to reduce boiler breakdowns and provide 11 days longer per year from the oil. Emergency 20 litre drums are being made available to purchase from company depots, and small delivery amounts will be available. “Last winter’s weather conditions called for some very timely and crucial response measures from the Topaz Local Fuels team,” Adrian Gallagher, Topaz home heat business manager, told Fuel Oil News. “Many customers did not realise that their oil tanks were so low and the increased demand during the cold snaps put pressure on oil companies, meaning many people had to endure the harsh cold while they waited for delivery.” Priority attention However, the company’s sales team realised that some circumstances needed more immediate attention than others. At the time of order, each customer was therefore asked about their level of need, and deliveries were scheduled based upon this information. Pregnant women, people with disabilities, and houses with older people and small children were given priority. Others were asked to wait no longer than 48 hours. For those who had to wait, the Topaz team delivered drums of 20-50 litres to tide them over until full delivery could be made.  Priority was also given to organisations who deliver essential services to keep the country running in spite of the weather, such as the army, defence forces and the Dublin Airport Authority. The company’s ‘need-based’ scheduling policy certainly came into play when the Dublin Airport Authority reported that their snow ploughs had run out of fuel, and unless delivery could be made within a few hours, the airport would be forced to close. Even though Topaz Local Fuels were fully booked for 48 hours, they quickly identified and re-scheduled non-urgent customers and delivery was made to Dublin Airport within an hour. Back at Doherty’s; alongside its traditional fuel distribution service, the company is also planning to expand its coal and firewood business, which, says Patrick Doherty, proved profitable last year. “As one of the most progressive fuel distributors in the North West of Ireland, we’ve made our contingency plans for another winter of freezing conditions, and are ready for anything that’s thrown at us!”