News 88
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/
The Fleet Safety Forum, a division of Brake, has published new guidance for fleet managers on managing agency drivers.
The guidance, sponsored by Pertemps, provides advice on how to minimise the risks posed by using agency drivers.
Research has shown that agency drivers are more prone to be involved in collisions, and with 42% of UK companies using temporary staff as drivers, it is a key safety issue.
The new guidance covers effective partnership working with the driver agency, rigorous inductions on company safe driving policy and vehicle checks and subjecting agency drivers to the same spot checks, e.g. for drug and alcohol use, as company employed drivers. The guidance features a best practice case study of a fleet operator that has successfully mitigated the risks associated with agency drivers.
The guidance is free to Fleet Safety Forum subscribers or £5 for non-subscribers. Email admin@brake.org.uk.
Fairbanks has been awarded a three-year wetstock management contract by Shell.Fairbankswill partner Tokheim as part of the contract, to deliver its services to more than 3,000 petrol stations, in 25 countries, across three continents.
A combination of hardware and software applications will provide automatic, real-time data to a team ofFairbanksanalysts. This will enable the delivery of detailed statistical inventory reconciliation (SIR) analysis of wetstock data to Shell. It will also help the company to benefit from improved wetstock protection and reduce the potential for fuel loss incidents.
Fairbanks director, Steve Jones, commented: “We’re delighted that Shell has chosenFairbanks. We feel we provide something truly unique and valuable to the marketplace; a suite of remote wetstock management services combined with a dedicated team of analysts that add value and insight to our client’s data.
“Shell employs a number of systems across its global networks and Fairbanksis well equipped to provide a service that works to meet Shell’s current and future business development ambitions.
www.fairbanks.co.uk
Cameron Forecourt has expanded its customer support team by appointing Ellie Nieuwenhuizen as telesales administrator, aiming to boost continued growth in the commercial sector.
The company’s new flash evaporation plant is helping it to exceed stringent PFO legislation
M2environmental has recently re-branded, reverting back to its original name of Malary.
Alongside its core business of manufacturing M2 processed fuel oil, Malary also produces cost effective solutions for hazardous waste streams which historically have been sent to land fill or incineration.
To accommodate an anticipated increase in chemists, business and equipment, a new laboratory is currently being built, which will more than double the existing work area. The laboratory was initially installed to provide seven day support to the company’s processed fuel oil production, but in the last six months it has branched out to provide external services. This includes the analysis of processed fuel oil, waste water, used oils, contaminated soils and hazardous waste.
Following a £300,000 investment the company commissioned a new PFO evaporation plant earlier this year. By introducing an additional process, Malary can reduce water content in PFO to as little as 0.1%, whilst also improving fuel quality and increasing production capacity. The investment also included the building of a new control room and the commencement of an automation project.
Operations director, Peter Oxley, commented: “We’re really pleased with the results which show that the time spent on R&D during 2011 has really paid off. This is a major step for the company, increasing production capacity by more than 25%, and moving us one step closer towards full automation.”
Recently installed – Caldo’s new Alpeco skid
Alpeco has recently installed a new bottom loading skid at Caldo Oils’ St Helen’s depot.
The company’s main depot was originally fitted with a top loading facility, which although was regularly serviced and maintained, was deemed too old. Managing director, Mike Scott was keen to replace the unit with an analogue installation: “I specifically elected to use an analogue system as I’m a traditionalist. I very much liked the cogs and wheels of our previous system, which lasted more than 30 years, so we’ve no reason to expect any less from the new installation.”
Alpeco was awarded the contract to supply and install a brand new bottom-loading skid, equipped with four loading arms and mechanical meters configured for 900 lpm loading rates. Alpeco also provided a finance package through its business finance partner, CBF.
“Although we have a number of depots, we provide all our fuel supplies from the St Helens facility as this is our only wet depot. Alpeco came up with a very good deal through CBF and we believe that it’s much easier to use one source to design, manufacture, install and even finance the whole project,” Mike explained.
“Alpeco also offers a very good back up service. This means a lot, as I can pick up the phone certain in the knowledge that they won’t present us with an invoice for something that should have been provided in the first place. Also you can actually speak to someone, which is always a great help.”
The convenient but safe and secure lock box
Hytek is now offering out-of-hours collections. Simply let the company know that you’d like to pick up your order after hours and it will be stored in an outdoor lock box. The steel box is equipped with a high security combination padlock. The combination will be sent by the Hytek team, once it has received confirmation that the order will be picked up.
The company’s new 2012/2013 catalogue is to be its biggest yet.
The catalogue, which has an extra 14 pages and over 100 new products, boasts more than 12 different product sections. Grouping similar products together in these sections means that the new catalogue is an easy to navigate tool.
Many products have remained the same price as last year and in some cases prices have fallen.www.hytekgb.com
50 distribution terminals currently serve the UK inland market. An updated wall map will be sent to Fuel Oil News subscribers in early 2013
A dislocation of fuel product supply – affecting around 20% of regional requirements – followed the explosion at the Hertfordshire Oil Storage terminal at Buncefield in December 2005.
Coming just a few years after fuel supplies were almost totally paralysed during fuel price protests in September 2000, these events prompted a heightened awareness of the importance of an infrastructure that is essential to the wider economy and, indeed, everyone’s daily life.
In government circles, this heightened awareness resulted in the setting up of the Downstream Oil Industry Forum. A forum charged with addressing the diverse challenges faced by the downstream sector, and, in particular, improving the resilience of both the physical infrastructure and the security and continuity of supply.
Commissioned by the Department for Energy and Climate Change (DECC), three separate reports on the subject have been undertaken by WoodMackenzie, Deloitte, and Purvin & Gertz.
v UKdownstream oil infrastructure
v Downstream oil – short term resilience and longer term security of supply
v Developments in the international downstream oil markets and their drivers: Implications for theUKrefining sector
The above reports can be downloaded at www.decc.gov.ukThe refinery network
Following the closures of Petroplus’ Teesside facility in 2009 and Coryton in June this year, the UK now has 7 operating refineries. From the start of 2005 only the twoHumberrefineries and Fawley are under their original ownership.
Since the last refinery – Murco’s Milford Haven – was commissioned in 1973, refinery numbers have progressively declined – from 18 with a total distillation capacity of 132 million metric tonnes (mt) to 7 with a total capacity of 77 million mt.
In the 1970s/80s refineries invested in fluid catalytic cracking capacity to upgrade surplus fuel oil into petrol; then the chosen motoring fuel*. The next two decades saw the introduction of more stringent specifications for clean fuels and a need for refineries to invest to ensure compliance.
Prior to the recent Coryton shut-down, around two thirds of refinery production was delivered to the inland market with approximately 80 % of the crude oil feedstock being sourced from theUKand Norwegian sectors of theNorth Sea.Refinery challenges
Poor profitability conditions in refining have been evident since 2008 and will continue, with no prospect of improvement expected, for another two to three years.
*UK refineries now have excess petrol production capacity and a shortfall for middle distillate grades. Finding outlets for this petrol surplus will become an increasing challenge.
UK and European refiners face increased competition from Asian and Middle Eastern export refineries. From January 2013, they will also face additional costs associated with the requirement to comply with the EU Emissions Trading Scheme; additional costs not being borne by Asian and Middle Eastern competition.Bulk product movements – by pipeline
Over half of all bulk movements are made on the oil company owned pipeline network.UKOP links the Thames and Mersey refineries, serving theMidlands (Kingsbury) and BuncefieldEsso Pipeline System serves West London (Heathrow), Purfleet (Gatwick), Avonmouth and theMidlands (Bromford) from FawleyMainline serves the Midlands (Kingsbury) andNorth West (Manchester) from Pembroke and Milford HavenFinaline services Buncefield (Heathrow) from Lindsey; currently restricted to Jet A-1
Two aviation systems feed Heathrow and Gatwick airports from Buncefield and Walton terminals
Originally commissioned before World War II, the government pipeline system is primarily a strategic defence facility used to supply military JetA-1; it also supplies Heathrow (from Avonmouth by Q8 Petroleum) and Stansted airports. Third party commercial use is limited to Killingholme to Bramhall in south Manchester. Former road loading terminals at Blackmoor, Hallen and Aldermaston are no longer in third party commercial use.– by rail
Rail movements account for 15% of bulk movements.
Adler & Allan is among Britain’s 100 fastest growing private equity backed companies. Henry Simpson and Mark Calvert receive their award. The company achieved 67th place
The need to diversify is certainly a topic of conversation among fuel distributors – some have already ventured into third party haulage, whilst for others renewables are adding a new dimension.
When it comes to diversification and keeping one step ahead of the market, Adler & Allan (A&A) is a shining example. Starting out as a London-based coal and coke merchant in 1926, A&A became a fuel distributor over 40 years ago. Aided by a series of strategic acquisitions, the company has spread its wings to encompass a range of associated activities including tank and forecourt services, spill response, mechanical and electrical maintenance, waste management, fuel polishing and testing.
In the midst of developing further new services, Fuel Oil News editor, Jane Hughes spoke to group sales & marketing manager, Alan Scrafton, to learn more. “Fuel polishing, vapour recovery refining, forecourt security products, Sockit filters, oxygen depletion in waterways and spray coat bund lining – these are just some of the most recent services added as a natural progression, and ensure that A&A continues to grow,” Alan explained.
Bolstered by acquisitions and some major contract wins A&A has consolidated its UK-wide presence. Cross selling its new services to existing customers is further aiding the business’ organic growth.New appointments aid expansion
Heading up the marine sales drive is Glyn Humphries. Formerly with Briggs, Glyn is chairman of the UK Spill Association. “Glyn’s brought a new impetus and vast experience to A&A, particularly in this sector,” said Alan. “Working alongside a larger client base and the Maritime & Coastguard Agency, we also have a busy training schedule running tier 1 and 2 level exercises.” Richard Tindell’s appointment as marine operations manager has bolstered A&A’s capability in the field. Richard has already been on active duty with recent spills and oxygen depletion incidents in lakes around the UK.
Looking after the industrial and tank services section is general manager, Gary Wilson. Ex Veolia,Garyhas particular expertise in managing large scale contracts in refineries and power stations. New projects for this division include a trackside refuelling facility for locomotives carrying cargo at Doncaster, with prefabricated underground storage tanks linked to high speed refuelling pumps, and a petrol refuelling facility for marine craft with above ground tank storage.
The acquisition of E&S Environmental in 2009 brought Nobby and Andrew Clarke into the team together with Dr Philip Nathan who runs A&A’s fuel laboratory. “E&S has invested in the latest equipment to provide the same analysis results as a UKAS-accredited laboratory, which enables us to offer a very competitively priced and fast turnaround service,” Alan reported.
As group safety systems advisor, Tony Gallagher has a customer-facing approach on HSE matters. Good at presenting to customers, he is upgrading policy across the business. “Working with A&A’s forecourt businesses, E&S and AJ Bayliss, Tony is currently arranging customer H&S days; being such a critical part of the business, we’re looking to fine tune this all the time,” explained Alan.
“With SHEQ manager, Carol McCalla spearheading ISO accreditation across the Group, these appointments are enabling us to better fulfill critical contractual obligations.”A greater geographical spread
A&A’s strength lies in being able to offer customers a significant breadth of capability across a wide geographical area.
A&A now has two bases in Scotland and recently appointed John Gilmour as operations manager working alongside, Amanda Merchant, area manager Scotland.
Earlier this year A&A Scotland were highly commended by all stakeholders following response to an emergency callout when a tanker carrying 20,000 litres of aviation fuel crashed causing a large oil spill. Local residents were evacuated and pollution control was carried out over four months under the watchful eye of the Scottish Environmental Protection Agency (SEPA).
Selected from an initial field of 212 potential contractors, A&A has a 4-year contract as emergency environmental response contractor for Scottish Power – covering the Scottish Lowlands, North Wales and Lancashire. “Having secured a contract with Scottish Power, other new business has followed in Scotland,” said Alan. A&A also has contracts with E.ON and Western Power Distribution and aims to win further energy utilities contracts.
A&A has increased its presence around the country to deal with the growth of contracted business. Most recent new depots include Droitwich, Doncaster and Tunbridge Wells.
Depot manager at the company’s Manchester-based waste division is Peter Lohan. “The north-west is a growth area and with a strong emphasis on sales, Peter has turned this business around; the base now employs 20 staff,” said Alan.
The aforementioned staff are just a handful of A&A’s 320-strong team, which is headed up by managing director, Mark Calvert. Mark, who joined the business 20 years ago, has alongside him commercial director, Henry Simpson, who leads the business development drive and operations director, Dave Whiskerd, both of whom joined in the late 90s. Keith Potts joined the board in 2010 as compliance director to manage the group’s wide scope of SHEQ requirements.From coal to fuel distribution and a network of specialist services
A&A still distributes fuel primarily from its new national operations centre at Barking (the company moved from Stratford in 2009 to make way for the Olympic redevelopment). A&A offers a 24/7 emergency fuel service, particularly appreciated by the south east’s banking and data centres. Located in eastLondon, A&A knows the area and can react quickly.
Aiming towards a national network of specialist services, consistency of approach across an ever expanding range of services and geographical areas is increasingly vital. “We have a major project underway to integrate internal systems using Goldmine Enterprise. This will process all enquiries, quotes, invoices and sales reports; it’s a big investment that will take us to a higher level operationally,” explained Alan. “It will enable us to be more precise in the way we handle contracts and, for me as a marketeer, it will give access to customer information ensuring better promotion of related services. Excellent communication and customer relationship management is important as the business continues to grow.”
Much of A&A’s growth can be attributed to the exposure it received cleaning up the Buncefield oil terminal following the explosion in December 2005 which led to 20 tanks catching fire. Appointed as principal contractor, A&A managed the uplift and disposal of over 27 million litres of contaminated waste and the safe cleaning of damaged infrastructure for demolition. Working in a very hazardous and tightly monitored environment, the project took 28 months and 80,000 man hours to complete without sustaining a single lost time incident.
With waste permits for oily waste, A&A is very active in fuel tank decommissioning at facilities such as power stations, distilleries and defence sites. Also working with emerging technologies, A&A provides spill prevention services to off and onshore wind farms. “With hydraulic oil needed to power a wind turbine, there is a risk of contamination on land and at sea,” explained Alan. Also offshore, A&A undertakes industrial cleaning on oil rigs.
The vision of A&A’s board, coupled with the appointment of experienced and dynamic managers, has fuelled this UK-wide diversification and expansion. “We’re getting lots of enquiries from overseas and we will go anywhere in the world (the company undertook projects in Sierra Leone, Nigeria, the Falklands and Norway in 2011),” said Alan. Always one step ahead, it’s worth watching this space for A&A’s next move.
A family affair – Craggs Energy directors (l-r) June and Ralph Thornber and Chris and Heidi Bingham
Individuals and personalities have been the driving force for Craggs Energy in carving out a space for themselves in the oil distribution business, writes Alex Porter
Only in operation since October 2011, the company has focused on the individual and a new approach to serving customers from its picturesque base, sitting comfortably in the Yorkshire hills near Halifax.
“We saw an opportunity to bring a different way of thinking to the industry,” said managing director Chris Bingham, who admits the business started without much market research, but instead relied on a gut instinct.
Chris had no personal experience in oil, but set up Craggs Energy with his father-in-law, Ralph Thornber, who sold his own fuel distribution business to Shell in the late 1980s. The two saw a gap for a small company with a high quality of customer service.
“A significant number of locals kept asking if we would launch a small family run distribution business as many such businesses had been absorbed into larger fuel concerns. By focusing on servicing the local communities, the business has been able to provide higher levels of service.”
He added: “A major focus for the business is building a level of trust with its customers, which means always delivering a good service at a fair price whatever the weather. Someone is on the phone 24 hours a day – it’s occasionally even me! We employ good people with enthusiasm and passion. We give customers guarantees and then we deliver on them.”Quality promise
There is a strong local focus. The three tankers and Land Rover, supplied by Tasca, have been likened to milk floats by customers thanks to the unique white design with a large image of the local area on the side. The name Craggs was also chosen to reflect their local surroundings. The company sponsors the local Young Farmers’ club rugby shirts, and Chris has been actively involved in fundraising for local causes. He recently completed three marathons in three days for charity, and in September has challenged himself to run ten marathons in ten days in aid of a local child. “I don’t want people to think of me, or the company, as bland and corporate,” he explained.
RNLI has an active fleet of 344 lifeboats operating around the UK
The Royal National Lifeboat Institution (RNLI) has awarded a five-year national contract to GB Oils.
For the next five years, GB Oils will be supplying the RNLI with both ultra low sulphur gas oil and marine gas oil to 61 of its sites, located across the UK.
As part of the contract, the company’s marine team will handle RNLI fuel enquiries, orders and deliveries, and will provide one central point of contact for the designated sites 24/7.
Andrew Woods, hovercraft operations manager at the RNLI, said: “The charity has an active fleet of 344 lifeboats that are used to provide 24 hour search and rescue services, so it’s really important that we have access to a reliable supply of fuel. Having experienced working with GB Oils previously, we were impressed with the company’s fast, efficient and dependable delivery service, and wide choice of quality marine fuels available.”
Gary Byres, national sales manager at GB Oils, said: “Over the years, we’ve built up a wealth of knowledge and expertise in the marine industry, to complement our large range of quality marine fuels and exceptional standards of customer service.
“We’re proud of the high quality services offered through our depots and no doubt this played a great part in us being awarded the national contract.”
PetroIneos Fuels has awarded a two-year contract to Lewis Tankers to transport biofuel from its bulk storage tanks in Grangemouth Docks to its fuel terminal at the Grangemouth refinery.
The Yorkshire-based haulier has an operating base in Grangemouth and will be utilising dedicated tanks for the contract.
PetroIneos imports bulk quantities of bioethanol into Grangemouth in its natural form and denatures it by mixing it with 1% gasoline. As part of the contract, Lewis Tankers will also transfer the gasoline used in the denaturing process from PetroIneos’ terminal to the storage tanks at the docks.
See the September issue of Fuel Oil News for more news from the Grangemouth refinery.
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/
The new site in Corby’s Southern Gateway is the company’s largest ever development
The retail arm of Brobot Petroleum has built a striking new development on a greenfield site in Corby’s Southern Gateway.
The site, which opened in May, represents the company’s move from a forecourt business to convenience retailing. It is two decades since Brobot built a site from scratch.
Brobot’s biggest development to date includes a large Londis convenience store with a Costa express machine, a Bake & Bite food-to-go, and seating. The company is also in talks to fill the currently empty unit next door with a branded food retailer.
Director Eddie Bright said: “Corby Southern Gateway is a big step forward in terms of concept. It’s a leap of faith into a different trading format – from a more traditional forecourt business to a full-on convenience business.”
Brobot has enjoyed a successful partnership with Londis since June 2009. Eddie added: “The industry was changing so much and we needed more expertise in shops because the shop is now the driving force behind the business.”http://www.brobot.co.uk/
Keyfuels is working in partnership with the RAC to help manage its fleet more efficiently.
The RAC serves more than seven million customers nationwide. With a large mixed fleet of more than 1600 vans and 45 10-tonne recovery trucks, it’s imperative to the profitability of the RAC that the fleet operates at maximum efficiency.
Dave Matthews, Keyfuels account manager said: ”Thanks to the flexibility of Keyfuels’ solutions, we were able to provide additional services to meet with the requirements of the RAC delivering a comprehensive and robust fuel management package for all its vehicles.”
Gary Wrightson-Heyworth, operation service manager at RAC said: “Fuel represents one of our biggest expenditures. Keyfuels’ cards and services give us the ability to accurately control and monitor the cost of fuel and our fleet’s expenditure, helping us to plan our fuel needs and purchase at the right time to save money.
“By utilising the Keyfuels network we are able to accurately distribute bunkered fuel nationwide and the extensive coverage provided by Keyfuels ensures that our drivers are never far from a participating site.”
www.keyfuels.co.uk
Tanker drivers have called for a new union – the National Tanker Drivers’ Union – to be set up.
“We could call it NTU, the National Tanker Driver’s Union,” wrote an anonymous driver on the DCC-GB Oils drivers’ info blog. “We could recruit every driver in every sector of the industry.”
Arguing that Unite, the drivers current union would not provide enough leadership going into the winter, the poster added: “I’ve spoken to a lot of main fleet drivers who feel the same way, and they would be interested in a union that deals with our problems and not everybody else’s.”
Others commenting on the post were quick to agree, one pointing out that he had received a letter saying his current union fees were set to be increased.
Another argued: “We should be fighting for equal pay and terms and conditions for all drivers of all brands. We all do the same job, some are paid a lot more than others, some are on time and a half everyday, some get sick pay, some get laundry allowance and some are paying for the driver CPC.”
http://dcc-gboil.blogspot.co.uk/
Comedian and compere Sean Lock and DAF’s Ray Ashworth are joined on stage by John Jackson, sales manager, Chevron Lubricants – sponsor of the award
As DAF’s CF85 vehicle wins Fleet Truck of the Year for a record-breaking 11th time, Volvo continues to strive to cut the number of rear-end impacts.
Ray Ashworth, managing director of DAF Trucks UK said: “To go on winning the Motor Transport award during some of the most challenging years the UK transport industry has ever experienced, underlines the key principles of our truck range – maximum reliability, highest driver comfort, together with the outstanding in-service support provided by our nationwide network of dedicated dealers.”Volvo helps drivers avoid accidents
Meanwhile the first results of the European Field Operation Test (euroFOT) field study presented in Brussels earlier this year, showed that Volvo Trucks’ active safety systems can help drivers avoid accidents.
“We studied 30 trucks, operating with two haulage firms, and examined the effectiveness of three systems: Adaptive Cruise Control (ACC), Forward Collision Warning (FCW) and Lane Keeping Support,” says Karsten Heinig, manager of the project at Volvo.
The study revealed that ACC and CW, which are used together to maintain a safe distance behind the vehicle in front, could cut the number of rear-end impacts on motorways by 15%.
“On average, the system is used less than half of the driving time. If usage increases, this will bring about a further reduction in accidents,” adds Karsten.
Figures supplied by OFTEC members to HHIC
Boiler sales for the first six months of 2012 are at the lowest for 10 years, figures have revealed.
Sales of all oil boilers during this period were at 23,254 compared to 26,590 during the first six months of 2011.
The figures cover all the SEDBUK bands and are based on figures supplied by OFTEC members to the Heating & Hotwater Industry Council (HHIC).
Numbers also showed that sales of all gas and LPG boilers were recorded at 671,435 from January to June this year, which was a 5.9% fall on the sales during the same period of 2011.
The HHIC has called for urgent support for the construction industry which is in a “perilous state”, before boiler manufacturers and other related businesses fall victim to the depressed state of the housing market.
Manufacturers have invested heavily in new product development, but remain dependent on a large number of property transactions.
Following its recent expansion, IFC has announced two new appointments.
Moody’s Investors Service has changed the rating for Total SA from stable to negative.
The move reflects Moody’s concerns that significant investment in Total’s upstream business since 2010 has constrained the recovery in its credit metrics, despite buoyant oil prices.
Figures from June 2012 showed that upstream investments from the previous 12 months amounted to $26billion, compared to $15billion in the 12 months prior to June 2010.
This increased capital spending includes Total’s growing involvement in major long cycle projects, such as shale gas, and the formation of new partnerships with independent exploration and production companies. This has resulted in a higher allocation of capital towards unproved, not yet producing assets.
However, on a more positive note, ‘Moody’s expects Total’s operating cash flow to benefit from the start-up of several upstream projects, which should help raise production to around 2.7million barrels of oil equivalent per day by 2015, and yield barrels of a higher margin.
Community Buying unLimited has teamed up with Cornwall Together, which unites the power of the county’s major employers to negotiate with energy companies to achieve the best deals on oil, gas and electricity.
The model, conceived by the Eden Project and launched in late July, includes Cornwall Council, Cornwall NHS, St Austell Brewery, CEP and Unison.
Community Buying unLimited, which is set to manage the oil side of the negotiations, is hopeful of rolling the system out across the rest of the UK very quickly. Founder, Chris Pomfret, hopes that this will help the oil supply industry to keep track of when customers are likely to order more oil, preventing shortages for buyer and supplier.
The model is based on businesses being connected together by Smart Meters, which allows users to keep track, via the internet, of their own energy levels and current information about prices and supplier levels.
However, Kevin Bennetts, owner of Consols Oils, said: “Community Buying unLimited claims to be about to revolutionise oil sales and sort out dishonest inefficient oil suppliers. But to deliver oil you need tankers, and the company doesn’t have any. While he sits and thinks, we are investing heavily in order to serve our customers better.
“Smart meters will see future orders go to the most suicidal quote from a firm that is desperate for work.
“Family firms like Consols Oils work in clearly defined areas where they are part of the community they serve, and have been built up through hard work and dedication. Our biggest asset is our loyal customer base.”
Fuel Oil News will be looking at the scheme in more depth in the magazine, and will be looking for comment from distributors. To comment, please email alex@fueloilnews.co.uk
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
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”.
Following OFT action, GB Oils, the largest supplier of heating oil in the country, has changed its domestic heating oil contracts ensuring quoted prices do not increase from the time an order is made until the customer is billed on delivery.
When a consumer orders from a supplier, ‘spot’ prices are quoted that reflect the current market price of oil. The OFT has today secured legally binding undertakings from GB Oils to change its terms and conditions ensuring prices quoted at order remain fixed until delivery.
The action follows on from its 2011 Off-Grid Energy Market Study, which identified concerns that some suppliers may not be treating their customers fairly.
Mary Starks, senior director in the OFT’s services, infrastructure and public markets group, said: “Customers need to know where they stand when they are dealing with suppliers. The action we have taken will allow consumers to buy with confidence, even during periods when the weather is snowy, and prices are changing rapidly.
‘This adds to a body of enforcement work the OFT has undertaken to ensure that users of off-grid energy are treated fairly by suppliers.”
Other action taken in this sector includes securing voluntary changes to the content of misleading websites, and voluntary agreements from the major liquefied petroleum gas (LPG) suppliers, to improve transparency around switching and cancellation rights.