Spotlight 22
Leading Hull family business J.R. Rix & Sons Ltd has reported a successful trading year during 2020 despite ‘challenging and uncertain times’ brought about by the global Covid-19 pandemic.
Hampshire-based Rawlings Fuels is an independent supplier of fuel oils delivering to domestic and commercial customers, including farms and agricultural companies. Its beginnings were in a transport company, from which the fuel company emerged, grew and eventually moved to its new dedicated depot just over a year ago in March 2020.
Well-known for taking on marathons around the world, Hugh Morgan, CEO of Morgan Fuels, is soon to take on his biggest challenge to date. In just a few weeks Hugh will be participating in an event known as the toughest foot race on earth to raise money for two amazing charities, Irish Hospice Foundation and NI Hospice.
Suttons Tankers has appointed a new fleet director to further support the strategic growth plans of the business. The [appointment of Steve Hassall, recognised by the DVSA as an Earned Recognition Operator, is part of a continuous improvement plan to futureproof the scalability of the business and support the ambitious growth plans.
Fuel Oil News Tanker of the Year 2021 – We are pleased to announce that we are now open for nominations for the opportunity to receive this highly sought-after industry recognition. Fuel Oil News welcomes your entries now for the prestigious 2021 tanker of the year award.
In the August edition of Fuel Oil News magazine, we chatted with Luc Smets, general manager at Prax Lindsey oil refinery, to discover more about the man behind the industry success – from his clear pride in his family, through his recent achievements, to his love of chocolate.
Essar Oil (UK) Limited has begun supplying jet fuel directly to airlines at Cardiff Airport, with new deals having already been secured with various carriers that operate flights from the facility.
These agreements demonstrate further the continued success of the Essar aviation fuels business, with direct supply arrangements now in place with carriers at five major airports across the UK – Manchester, Birmingham, London Stansted, Leeds-Bradford and Cardiff.
Adam Brayne, aviation & business development manager at Essar, commented: “Adding Cardiff Airport to our UK network is a further chapter in our growth story, as Essar continues to support major airlines through what we hope will be a recovery period for the sector. We look forward to a successful partnership with the airport and are delighted to have already secured direct business with a number of key airline customers there.”
David Walters, chief financial officer of Cardiff Airport, added: “We have been working hard to ensure suitable choice is available to our airline partners at Cardiff Airport, and we are very pleased that Essar has agreed to work with us as a new long-term fuel partner. We really look forward to working closely with the company, as we welcome more flights and airlines back to Cardiff.”
In the July edition of Fuel Oil News magazine, we chatted with Peter Davidson, executive director of the Tank Storage Association.
Speaking of his family, recent achievements and a love of chocolate, we chat with Luc Smets, general manager at Prax Lindsey Oil Refinery to discover more about the man behind industry success.
Hampshire-based Rawlings Fuels is an independent supplier of fuel oils delivering to domestic and commercial customers, including farms and agricultural companies. Its beginnings were in a transport company, from which the fuel company emerged, grew and eventually moved to its new dedicated depot just over a year ago in March 2020. A year on from the move, managing editor, Margaret Major, visited Tom Davies, director of Rawlings Fuel, and the team at the Hook depot to hear how things are going now.
Prince Petroleum was recently approved for two prestigious accreditations following a project that began in late 2020.
Announcing figures for the year to May 3, 2021, the Nantwich-based fuel, food and feed distributor, NWF Group, has declared them to be ‘another strong set of results, ahead of expectations’ which presents ‘a significant opportunity for growth’.
The performance represents the second highest profit performance on record for the Group.
The response to Covid-19 has been effective throughout, with continually updated risk assessments across the Group enabling safe working and ensuring customer needs have been met by all divisions. Whilst all divisions have remained open and operational, providing essential services, there was a notable outperformance in the fuels division, with strong heating oil demand supported by a cold winter and an increase in home working during the pandemic. A headline operating profit of £9.3 million (2020: £11.0 million) was ahead of expectations and against a prior year which benefitted from a significant fall in the oil price.
Overall revenues were down slightly at £675.6m, compared with £687.5m the previous year, and pre-tax profits were down 10% at £10.8m. However, net debt reduced by 19% to £31.3m, and the total dividend has been increased, for the tenth consecutive year, by 4.3% to 7.2p per share, which the board said reflected its confidence in the prospects for the business.
Richard Whiting, chief executive, NWF Group plc, commented: “NWF has delivered another strong set of results, ahead of expectations set before the pandemic, demonstrating continued performance, delivery and resilience. Our teams have worked hard during the year meeting customers’ needs whilst staying safe. I’m proud of how we have responded to the challenge of Covid-19, Brexit and a cyber incident and exited the year strongly, with significant financial capacity and a clear growth strategy.
“There is a significant opportunity for growth backed by strong cash flows and flexible banking facilities alongside a strong asset base. We will therefore continue to consider acquisition opportunities, building on our successful track record of acquiring and integrating businesses, as well as investment in organic development.
“Performance to date in the current financial year has been in line with the Board’s expectations. Overall, the Board continues to remain confident about the Group’s future prospects.”
Essar has announced the appointment of Deepak Maheshwari as chief executive officer for Essar Oil (UK) Ltd (EOUK).
Deepak joins EOUK, an important asset in the energy portfolio of Essar Global Fund, at a transformative juncture as it accelerates its transition to a ‘Low Carbon Energy Provider’ of the future.
As CEO, Deepak will work closely with the EOUK Board on the delivery of a number of strategic energy transition projects aimed at making Stanlow a green refinery to meet the post-carbon needs of a progressive UK.
Amongst these are HyNet (a low carbon hydrogen energy and carbon capture project) which will transform the North West of England and North Wales into one of the world’s first low carbon industrial clusters, together with the building of a biofuels business which will include production of both renewable diesel and sustainable aviation fuel (SAF).
With more than 25 years’ senior leadership experience across the utilities, energy, and infrastructure sectors in Europe and Asia, Deepak will lead an experienced management team and further strengthen corporate governance within the ESG framework.
EOUK chairman, Prashant Ruia, said: “We are delighted to welcome Deepak to EOUK. His immense corporate experience will prove invaluable during such an important period of growth for the company, which is aiming to be a leading player in the transition towards a sustainable society by delivering cleaner energy solutions.”
Deepak commented: “I am delighted to be joining EOUK as chief executive officer and look forward to building on the impressive legacy that Essar colleagues have created. The UK’s green economy continues to develop and flourish, and the Board and I will work hard to ensure EOUK sits at the fulcrum of the UK’s sustainable, low carbon future.”
Scotland’s fastest-growing fuel distribution company, Oilfast, has announced an investment of over £700k in a further fleet expansion with the addition of five Volvo FE 6×2 Rigid Tankers.
Specialising in heating oil, red diesel, derv and licensed AdBlue and delivering to both domestic and commercial customers, the fleet additions are part of Oilfast’s commitment to expand and improve.
The company has a growing base in Wales with 8 depots across Scotland and Wales and the five new trucks will operate out of the company’s Crieff, Grangemouth & Insch Depots in Scotland.
William Nicol, transport & operations director commented: “We deliver excellent service to the UK, no matter the circumstance – even during COVID-19. That is why we are reinvesting back into the areas of the business that matter most to our customers.”
The Tanker build
The tankers are built by Cobo on a Volvo FE chassis with discharge and metering equipment from Emco Wheaton. After shipping the vehicle chassis to Emco Wheaton’s workshop in Margate, the specialist team attach the new metering equipment to the chassis for transport to Spain. On arrival in Spain, the team at Cobo install the chassis and tanker together – a process that can take serval weeks to perfect before returning to the UK.
Once the build is complete the tanker is returned to the UK for testing to ensure it is safe for transporting fuel. After passing this test it is then sent to be branded in the iconic Oilfast logo & saltire before being delivered to the Motherwell head office.
Key features
Each tanker has a gross vehicle weight (GVW) of 26 tonnes giving a maximum carrying capacity of 17,500 litres and are equipped with 5 compartments to allow for a wide range of products and services.
All vehicles come with 3 key safety features:
Overfill protection
Electrical isolation
Earthing & vapour recovery
What comes next?
Oilfast is quick to acknowledge the part their customers have played in putting them in the position to expand the fleet as William explains: “As we grow as a company, so does our customer base and we want to ensure that we do right by all our customers. As such, the technology may change but our approach to customer service will not. We do not have call centres; we will always have community focused depots that offer a localised approach to providing our services. As such, we are still committed to providing the best service possible.”
And, looking ahead, William concludes: “Our vehicle investment for 2021 is now over £1million. With a further 8 tankers coming in 2022 this takes our total investment in vehicles to over £2.5million in two years. As we grow, it’s important we reinvest back into the areas that got us here in the first place. We are extremely excited to see the next generation of Oilfast tankers out on the road and hopefully, our customers are too.”
Having recently been promoted to the role of inland sales manager at Mabanaft Clare Charlton is enjoying the challenge and responsibility and is also looking forward to working with the management team as the company develops its supply of more sustainable fuels.
Maintaining high levels of service
Clare joined Mabanaft in 2019 as a key account manager and has risen rapidly to take on this new role. The inland sales department is responsible for selling fuel to a diverse range of customers, from resellers, distributors and commercial/end users to bunkering network users and supermarkets. Clare will be working with her team to ensure that all customers’ needs are met and that the high levels of service that the company is renowned for are diligently maintained.
Building lasting relationships
Clare said: “I am enjoying the challenge and responsibility of my new role at Mabanaft. I love the company ethos of building strong and lasting relationships with customers, it’s something everyone here buys into. I also really like the people, there’s a good team spirit and plenty of positive collaboration which makes for a great working environment.”
Supporting customers through changing times
“The last 18 months have been dominated by the global pandemic. People still needed fuel and I am proud of how my team managed to support customers and deliver excellent service throughout. Our industry is undergoing massive change and I am looking forward to working with the management team to seek new opportunities to support the transition to new and more sustainable fuels.”
Carrie Marsh, managing director of Marsh Fuels and Master Elect of the Worshipful Company of Fuellers, has won a Lord Mayor of London Covid-19 award for services within the Livery.
Carrie met with the Lord Mayor of London on 19th July, where she was presented with the award, as well as a wonderfully aromatic mint tea grown in the UK and Mansion House bone china mug.
This special edition of awards in light of Covid-19, usually held annually by the Lord Mayor in London for business, recognised the unsung community heroes helping others through the pandemic. From hundreds of nominations spanning the length and breadth of the city, 13 winners were chosen in three categories: crisis response, delivering differently and community champions, plus the Mayor of London Young Londoners Awards.
A worthy winner, during the last 15 months Senior Warden Carrie Marsh, has been writing a weekly blog to lift members’ spirits, especially for those not online, designed for the initial 12 weeks of lockdown and then extended until all members could meet again in person. Telling us more about the upcoming meeting, Carrie said: “The date for that has finally been set for 26th August this year, with the last – and 70th blog – to be sent on the 25th August!”
As well as boosting morale, Carrie also made face masks for the membership and donated the proceeds of these to the Fuellers Charitable Trust Fund. Not stopping at making masks, Carrie said: “The Trust
Europump Maintenance (EPM) has received a glowing health and safety review from Hanson Cement for work carried out at the client’s Ribblesdale site. With the account being a relatively new one for EPM, the team had to go on site to do a PPM (planned preventative maintenance) check. At the same time, a Europump engineer was on site to do a line test. During the visit, Hanson’s team carried out a spot check on EPM’s work.
Europump service engineer, Graham McAlister, said: “Ribblesdale is a big cement plant with a fuel island on site. While undertaking our work we had to ensure that we were protecting ourselves and the working area. Someone from Hanson came out on site with a clipboard to do a spot check and scored us for health and safety measures. They said they were absolutely over the moon with what we were doing and awarded us a gold star, which is their highest rating!”
Steven Bamford, workshop co-ordinator at Hanson UK’s Ribblesdale works, said: “We were very impressed with the Europump engineers, especially with how professional and organised they were with regards to isolating the area and making the work area safe for themselves and others.”
McAlister added: “It’s lovely to get feedback like this but what Hanson thought was impressive was actually normal for us!”
The Prax Group has appointed Rob Marrow as interim group chief financial officer (CFO) with immediate effect. The group is continuing its search for a permanent CFO and will update the market on its progress as appropriate.
Rob brings with him a wealth of experience in roles that have included responsibility for strategy, corporate finance, M&A transactions, and investor relations. He was more recently, the commercial and financial lead for the group in the acquisition of Prax Lindsey Oil Refinery.
With over two decades of experience across oil and gas, manufacturing, technology, retail, supply chain and trading, he is an experienced finance leader with a proven track record of delivering growth, championing change and building teams.
Sanjeev Kumar, chief executive officer, said: “Rob’s broad financial experience and comprehensive knowledge of our business make him a strong appointment as our interim group CFO, providing continuity while we continue our search for a permanent CFO.”
Rob will succeed Robin Edwards, who sadly passed away on 30 June 2021.
Essar is pleased to announce the further strengthening of its executive leadership team with the appointment of Karunakaran (Karan) Hari as chief commercial officer for Essar Oil UK.
The winner of UKIFDA’s Young Person of the Year Award, which was launched this year to recognise the achievements of rising stars in the industry has been announced.
Cornwall-based liquid fuel distributor for the South-West Mitchell & Webber has won the UKIFDA Innovation Award for being at the forefront of the sector’s Future Fuels campaign and for making a real difference in the industry’s drive to make renewable liquid fuel a viable alternative to heating oil for off the gas grid properties.
Sponsored by industry trade magazine Fuel Oil News, UKIFDA launched the Innovation Award in 2021 to find and commend the one thing that makes the industry stand out – and will always support the most innovative products, services, or initiatives.
In May this year, the Clipper Freeport – a VLGC (Very Large Gas Carrier which can carry approx. 44,000 mts of LPG) carrying LPG from the Phillips 66 Freeport LPG Export Terminal on the Gulf of Mexico, docked at Immingham Port on England’s east coast.
Chartered by Phillips 66 since its maiden voyage in 2017, the Clipper Freeport was the first-ever VLGC to enter Immingham – the largest vessel to enter the Port.
A complex operation made possible by a seamless collaborative effort between London Commercial, Humber caverns and APT/ABP – the two-port schedule saw 25 KMT of refrigerated propane successfully discharged before heading to Europe for its second discharge.
Measuring 230.11 metres in length with a 32-metre breadth and a 11.5 metre draft, the vessel is so vast that Phillips 66 had to have a new gangway constructed.
Paul Turner, Phillips 66 Limited LPG sales manager in the UK made his way to Immingham Caverns to welcome the Clipper Freeport and was invited onboard to check out this monumental supertanker: “The Clipper Freeport really is an immensely impressive vessel and equally so when on board. Apart from the sheer scale, what struck me most about this world-class LPG carrier is how immaculate every part of the ship is – considering the nature of her operations. An extraordinary environment managed and maintained by an expert, dedicated crew. They even have a basketball court on deck!”
Whilst LPG is primarily produced and supplied into the UK market by Phillips 66 Limited’s Humber facility, it is supplemented by imported propane to meet increasing customer demand.
Employees of Grangemouth based Rix Petroleum will begin the eight-mile-long climb and descent of Ben Nevis on Saturday 3rd July, raising £2000 for the My Name’5 Doddie Foundation.
The foundation supports people with motor neuron disease (MND) and is named after former Scottish rugby player Doddie Weir, who was himself diagnosed with MND.
Having always wanted to climb the iconic peak, Gail Fawcett, business unit manager at Rix Petroleum, came up with the idea and roped in colleagues Lisa Welsh, Ian Patterson, Ross MacRae, Paul Graham and Connor O’Hagen to join her in the challenge, along with more friends and family members.
Rix Petroleum started supporting the My Name’5 Doddie Foundation earlier this year. The charity’s two main objectives are to raise funds to invest into MND research and support people living with the condition to have as full a life as possible.
Gail said: “Ben Nevis is a true Scottish icon and so is Doddie Weir. They’re both giants in their own right. So, when it came to raising money for the My Name’5 Doddie Foundation, summiting the UK’s highest peak seemed like the only appropriate thing to do. Plus, I’ve always wanted to climb it, so it was too good an opportunity to miss.
“We’ve all started training and with just a couple of weeks to go, the excitement is building. I think we can do it in around eight hours, but other members of the team are thinking a bit quicker, so there could be a bit of competition on the day.”
As he looked forward to his retirement in May this year, Fuel Oil News spoke with Bob Taylor, managing director of World Fuel Services’ UK Land Business, who shared with us his thoughts on the highs, lows and future of the industry.
Telling us more about his history in the fuel sector, Bob says:
“In a nutshell, my entire career has been in fuel. When I left school at 16, I wanted to work in computers. But I got offered a job as a clerk in a fuel company called Fuel Fast and took that instead.
“That first job taught me all sorts. I worked out on the road with drivers and in the office in sales. At the time, you only had winter prices and summer prices, which never moved. Rather than selling, it was a case of finding new customers, sharing some port and signing on the line.
“After my time in sales, I was offered a job as a depot manager. I was only 25 and hugely out of my depth, but I learned so much and ended up taking on an area, and then regional, manager role when I was in my 30s. The first time I ran a business was when I became MD of Total Butler. After this stint, I got asked to come over to World Fuels as the MD for the UK Land Business.
“All I’ve known is the oil industry. Cut my arm off and all you’ll get is oil.”
A balancing act
With a career spanning several decades and experiences gathered from several different companies in the distribution industry, Bob is well-placed to suggest what should be the top priority for any business:
“The products are all the same, the difference is the service. In every business I have worked for, there has always been a balance between delivering a great service and driving a profit. I found that the larger a distributor grows, the more difficult it is to focus on looking after employees and customers. Keeping people in sight should always be the priority.”
Evolving oil
Bob comments on the changes he’s witnessed throughout his 40 years in the industry:
“One of the biggest industry changes I’ve witnessed is health and safety. It has become so much more important, and rightly so. All our colleagues should come to work and know that they won’t come into harm.
“Technology has also evolved oil in a big way. We are now moving towards telemetry in tanks linked to an automated fuel delivery service, for those that want it in the future. These developments are key opportunities, but technology also comes with its challenges. More customers are buying online, so oil has become more of a commodity rather than a service that people feel loyal to.
“Of course, some things don’t change. Customers have always asked ‘how much?’ and ‘when can you deliver?’. And I suspect that they always will.”
When asked about the changes that Bob sees in the not-too-distant future, he says:
“We can only sell what the consumer wants, and sustainable alternatives are becoming increasingly in demand. Companies will need to go down cleaner energy routes, and we have to find a way to offer these services over the next five to ten years. Whether we sell ground source heating, renewable energy or sustainable fuels, we need to adapt.”
On the road to retirement
As Bob considers his plans for retirement, he reminisces over some of the key memories from his time in the industry:
“My career highlights are all down to the people I’ve worked with. I owe a lot of my success to the mentors who guided me. And if I have helped anybody in their career, I feel that I’ve given something back.”
A decade of decisions
“My retirement date has been set in stone for the last 10 years, but what I decide to do with these years is fairly loose. I’ve recently realised that after 43 years of hard work, I don’t have any hobbies! So, I have been getting into clay pigeon shooting and will definitely keep that up.
“Spending time with family will also take up most of my time, especially with my grandchildren. We’ve really missed them over the last 12 months and are desperate to make up for lost time. And of course, travelling. As soon as we can, we’ll get out to the Maldives and to Venice via the Orient Express – another bucket list item ticked off the list and, at some point, we’ll go to Australia for six weeks.”
Telling us about the most valuable learnings from his career, Bob concluded:
“Two words: honesty and trust. When you run a business, stay honest and you can’t go wrong.”