News 34
Mabanaft’s new Onroute Truckstops brand is being rolled out across its network of truckstops starting with Junction 29 in Chesterfield. The first thing drivers will spot on approach will be new Onroute flags fluttering above the site, then a smart new forecourt canopy bearing the Onroute logo and new signage at the entrance to the café and shop. The rebrand heralds the beginning of a new era and places the new Onroute brand firmly on the map.
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.
As part of the Prax Group’s ongoing commitment to sustainability, Prax Lindsey Oil Refinery has joined the V Net Zero Humber Cluster decarbonisation project.
Speaking at the launch of their annual Economic Report today, OGUK Chief Executive, Deirdre Michie OBE, has said that the UK oil and gas industry is key to delivering the country’s net zero ambitions and emphasised how different parties must work together if that goal is to be achieved.
GMB Wincanton HGV members see their essential value recognised by an 11% pay deal with GMB London Region, representing Mechanical offload HGV drivers, agreeing to an 8% pay increase with a further 3% increase granted from September to December 2021.
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.
As has been reported through Fuel Oil News (here), the logistics industry is facing a serious shortage of skilled workers. In response, business group Logistics UK has launched a new comprehensive, free guide for employers from across the sector on “Funding and support for accessing logistics skills.”
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.
Climate campaigners known as ‘Extinction Rebellion’ blocked a terminal entrance near to the largest oil refinery in the UK yesterday in protest at the Fawley expansion plans.
A Scottish Enterprise report heralds Scotland as a world-leading producer of clean hydrogen within the next ten years and finds that the technologies and deployment will be paramount to the success of Scotland’s target of net zero by 2045
With less than one month until Logistics UK’s Fleet Engineer – the essential one-day conference for anyone responsible for maintaining commercial vehicles – the business group is urging fleet engineers to book their places now to ensure they are up to date with the latest developments in technology and enforcement.
Following an extensive refurbishment, the family-owned Hertford Road Service Station in Enfield has re-opened as a JET branded site. Previously BP branded, the popular site has been closed for two-months during which time the height of the canopy has been raised, the buildings re-modelled to provide 2000 square feet of retail space and the look and feel transformed by the iconic Jet branding.
Stolt Tank Containers (STC) has expanded its global network with the opening of Tank Wash Scotland Ltd, a new ISO tank depot in Grangemouth, Scotland. Grangemouth is Scotland’s largest port, handling nine million tonnes of cargo and over 225,000 shipping containers and is an ideal place for the depot to support customers given its convenient connections to the local rail freight network and close proximity to Scotland’s main road arteries.
The depot provides state-of-the-art cleaning, heating, storage and repair facilities for road-tankers, third-party tank container owners and STC’s own tanks. It features one segregated drive-through food bay, six fixed food bays, two drive-through chemical bays for road tankers and iso tanks, three test bays, three hot work repair bays, 12 steam-heating bays and parking for 30 trucks. A wastewater treatment plant offers a sustainable solution for handling waste, limiting water use and reducing transport-related CO2 emissions.
Michael Kramer, President, Stolt Tank Containers said: “I am delighted to announce that our latest depot is now up and running. Our long-standing relationships with customers, coupled with the expertise of our highly experienced local team will deliver value and quality to local markets. This is another step in our journey to optimise logistics by investing in facilities close to our customers and the digitalisation of our processes.”
STC believes that its investment in modern, efficient facilities at Grangemouth significantly improves the standard of tank cleaning across Scotland. In addition to aligning with STC’s sustainability strategy the investment also supports the Scottish Whisky Association’s ambitions for a circular economy and transitioning to net zero by 2040. The site is a member of the National Road Tanker Cleaners Association (NRTCA) and the European Federation of Tank Cleaning Organisations (EFTCO). Its high standards are recognised by SQAS certifications for tank cleaning and food handling.
When fully operational the Grangemouth site has the capacity to house 240 tanks and will serve the needs of customers in the local petrochemical industry and food and drink sector, which is by far Scotland’s largest export market.
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.”
UKPIA has today published its annual review of the UK downstream industry. It provides a collection of recent information on the sector from government departments, UKPIA members, and a range of other sources. The Statistical Review, which UKPIA has published since 2003, is an accessible compendium of UK downstream industry statistics and provides a comprehensive and quick reference point for those working in industry, policy makers, and all who wish to gain a quantitative understanding of the UK industry.
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.”
In a significant expansion of its future fuels capabilities, marine energy specialist KPI OceanConnect has announced the launch of its Alternative Fuels and Special Projects division led by Bill Wakeling, an expert in marine fuels. As pressure intensifies for the shipping industry to become more sustainable, the new division will capitalise on its experience and expertise to enable its clients to achieve net-zero emissions from their marine fuels.
Bill Wakeling will head up this new division of KPI OceanConnect, a leading global broker and trader in marine fuels for more than 50 years and will lead on all matters relating to alternative fuels and decarbonisation, as well as exploring opportunities for new ventures and projects. With his rich experience in marine fuels, Bill is well-positioned to lead this new function, and drive measurable environmental and sustainability change throughout the marine fuel supply chain.
Speaking on his appointment, Bill commented: “I’m honoured to lead KPI OceanConnect’s alternative fuels and sustainability operations at a time where the industry must accelerate its decarbonisation progress in line with the International Maritime Organization’s 2030 and 2050 targets.
“In the last 18 months, we’ve helped our partners successfully navigate through IMO 2020, and showcased our agility and innovation by completing one of the shipping industry’s first carbon offsets. However, there is no shortage of challenges for shipowners and operators as they seek to realise a more sustainable future, and we’ll be working with them side by side through our long-term partnership approach to help achieve their sustainability ambitions and regulatory compliance.”
Commenting on the announcement, KPI OceanConnect’s CEO, Søren Høll, said: “This new function signifies our commitment to advancing decarbonisation in the maritime industry, and Bill Wakeling is the ideal person to head it up; there are few people with his track record, marine fuels expertise, and commercial awareness.
Our clients have a growing and sustained need for innovative solutions that can enable them to fulfil their green objectives, and they’re going to be in very safe hands with Bill and his team.”
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.”
To consider the future of the fuel oil industry, we need to contemplate its past. From a ‘dirty oil’ image to one displaying adaptation, growth and evolution, the changing face of the fuel industry is one that’s been witnessed within our own pages more so now than ever before. Steering a business towards growth and opportunity in a rapidly changing industry is not for the faint hearted, and here, we speak with distributors currently at the helm to see how they are safeguarding the future of their businesses with succession planning, and the challenges this brings.
Playing a key role in the hiring process at Harlow-based New Era Fuels, we hear from HR manager, Vicky Finch who tells us about her own entrance into the company: “I entered the business having eight years’ experience working within human resources and recruitment. I met with the finance director who presented me with New Era Fuels core values, which attracted me to the position. New Era Fuels was undergoing a growth phase and required a full-time human resources manager. I felt very excited to be part of the New Era Fuels family; I was especially attracted to the company culture, core values and the growth plans for the future.”
Telling us more about the company’s growth plans for the future and how the first port of call is looking within the company, Vicky comments: “As a business, we understand succession planning can be to identify business-critical roles for which potential successors are needed. New Era Fuels are always looking out for our ‘shining stars within the business.”
New Era Fuels is not against bringing new talent into the business however, as Vicky explains: “We are pro-apprentices! We recruit for apprenticeships across the business and have the view that employing apprentices is a fantastic way to upskill, train and develop employees.
“Our apprentices make contributions to the workforce whilst they are learning – gaining skills on the job. We typically appoint a ‘mentor’ who will be the line manager of the apprentice. The mentor will help our apprentices develop their approach to work, including building rapport, teamwork, integrity and remaining positive and professional. They will also teach the apprentices about company procedures, culture and the ways of working.
“Hiring an apprentice is a cost-effective way of recruiting and training our employees too.”
A family affair
One of the most charming aspects of the industry is the number of businesses still owned and operated by families. With new generations taking the reins from their parents, it seems that many in the sector have ready-made succession plans. David Prince, owner of Melton Mowbray-based Prince Petroleum tells us more about his own family’s history with fuel distribution:
“Prince Petroleum was started by my late father Victor Prince in 1963, at this time they were known as “Hawkers” for Esso blue paraffin, I recall as a child going out on paraffin delivery rounds with my father in, what was already an old, ex MOD fuel Tanker.
“By the mid to late sixties the business was appointed an authorised distributor for the then continental oil company (CONOCO) at this time the business had expanded into road fuels, home heating oil and agricultural fuels.
“Today Prince Petroleum is owned by David and Rita Prince. The business continues to grow and recently my two sons have joined the business.”
We also spoke with Tom Davies of Hampshire-based Rawlings Fuels about the issue of succession for an independent distributor but with three generations of the Rawlings family still active in the company, Tom sees no reason why the business shouldn’t continue operating independently for many years to come.
Terry Rawlings was the owner of Rawlings Fuels when Tom got involved, as he explains: “I was originally a planner at Cemex in the construction industry and then came into oil distribution to work for Terry.” Terry is still involved with the business but has passed it down to his son, Paul Rawlings. It is still very much a family business with Terry’s daughter and grandson also working for the company.
Sam, Terry’s grandson is currently the O-license holder for Rawlings Fuels and so the company is safe in the hands of three generations of the family with everyone focussed on the company vision of looking after its customers in the very close-knit communities Rawlings Fuels delivers to.
Finding the right person
For some, having a succession plan is only half of the challenge.
Having gone straight from school into Ultramar Golden Eagle and the family-owned fuel distribution business, Mark Nolan is someone who clearly sees the challenge that succession planning presents to the independent distributor: “My grandfather was the first distributor in the family supplying coal and wood to the local community. Then my dad came on board and set up selling petrol for Regent from fuel pumps at the front of the farm and then onto selling blue paraffin bought from Vine Fuels who then wanted a distributor for kerosene between Bicester and Aylesbury.
“This was how fuel oil distribution first became the family business and my mother and father set up Markim Fuels as a distributor for Ultramar which I became a director of and then Q8 bought out Ultramar so I set up independently as Nolan Oils in 1988. In truth I believe I now work twice as hard for a 3rd the profit my parents enjoyed, so they used to tell me!
“I’d love to expand but it’s a challenge to find the right person to run a third depot with the industry not as attractive to come into as it once was. I can understand why others I know have sold up. Some have no-one to hand it down to, others see buying groups constantly eroding the profit margins and many youngsters perceive it as smelly and dirty industry which reduces new talent coming into it.”
“It’s a shame because I still love the business as do my staff. I look after them and they look after the customers and, at the end of the day, that brings a lot of satisfaction.”
Do you have a succession plan for your company? Have you thought about selling, or buying in the future? We’d love to hear from you.
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
Having recently reported the concerns of industry trade bodies Logistics UK and the CBA regarding driver shortages (here) and the potential impacts on supply chains (here) it is reported that the issue has contributed to the temporary closure of several petrol stations after running out of fuel due to lack of deliveries.
Last week a busy BP service station on the A140 in North Norfolk was temporarily closed and there are also reports of sites in Reading and Berkshire having to close for a period leaving drivers faced with empty petrol pumps.
BP bosses have admitted its petrol stations have been affected by the driver shortage, meaning some of its pumps are empty, but explained that the issue is not due to a fuel shortage. Fuel companies are being hit by driver shortages which are impacting supplies. The shortage of HGV drivers is an already chronic problem in the industry but is being further exacerbated by some drivers being forced to self-isolate after being pinged by NHS Test and Trace.
The Test and Trace issue also necessitated a temporary closure of the BP fuel distribution terminal at Hemel Hempstead with the spokesperson confirming: “We are experiencing fuel availability issues at some of our retail sites in the UK. Our supply chain has been impacted by the industry-wide driver shortages across the UK, exacerbated by a temporary closure of our Hemel Hempstead fuel distribution terminal last week because of necessary Covid-19 isolations among staff impacting our supply chain. Our Hemel terminal is now operating as normal.
“We are working hard with our haulier supplier to deliver fuel into sites and minimise any disruption to our customers. We apologise for any inconvenience caused.”