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Should face a market adjustment test soon very much likely due to China Market again. Buy dip then.
do not sell early and let it run till above $1 ...good luck
buy on dip...not for contra and good luck
With continuing strong demand for storage space here from oil traders, Chemoil is planning a further US$53 million ($80 million) tankfarm expansion even before its US$39 million Helios Terminal on Jurong Island is ready this year-end/early 2008. This will add 180,000 cubic metres, or an additional 40% capacity, to the 448,000 cu m Helios tankfarm now under construction, Robert Chandran, Chemoil's president and CEO, said on the sidelines of a energy talk.
It is discussing details of the project - including land space - with the authorities, as sites on the petrochemical island are highly sought after by chemical manufacturers. Once the green light is given, construction can start on the expansion, which can be completed by mid-2008, he said.
Conceding that building costs have risen significantly in the current construction boom, Mr Chandran, however, said that as infrastructure like jetties are already being built for the current Helios tankfarm, the expansion involving just additional storage tanks - for clean products like gasoline - will not be overly costly.
It is looking at various financing options, including possibly a convertible bond issue, to fund the expansion, he added.
Guys, reminder, its initial IPO price was US$0.85. Hence, just buy and keep this counter inside your drawer, go and look for much more of such pearls. It is getting a challenge to fish good stuff like this in today's market. Try harder and good luck.
Maybe a longer term is necessary... 2 years perhaps...
Today(April 27th 2006) price is 78 cents. Let's see what price it will be at 2 years from now.... :)
buy and hold for 1-6 months...will reach above $1 by then...good luck and not for contra
Chemoil Energy will start trading middle distillates and gasoline in this region by next year, its chief executive said on Wednesday.
To facilitate the trades, the company is in talks with the government to expand its oil storage facility in Singapore by about 40%, bringing its total capacity to 630,000 cubic metres (cu m), by mid-2008, said Robert Chandran.
"We have gotten board approval to go globally on clean products. We are looking to start trading in Singapore and Fujairah soon and in the midst of discussion," he told Reuters.
The firm, the largest marine fuels supplier in the ports of Los Angeles and New York, started trading clean oil products in the United States two to three years ago, with monthly volumes of about 1.5 million barrels, Chandran added.
Traders expect Chemoil's trading volumes for clean products to be comparable to the region's largest players such as BP, Vitol and Singapore trader Hin Leong, going by the size of its storage capacity of 180,000 cu m.
The new capacity, which will cost US$53 million, is mainly for its own use and is located next to the facility that is under construction, Chandran said.
"We are currently in talks with the Economic Development Board. If we get the approval for the land, we can begin construction immediately and the terminal will be operational within 12 months," he said.
Chemoil is building a 450,000 cu m facility, mainly for dirty products such as fuel oil, on Jurong Island, slated to start operations by end this year.
The company currently trades mainly fuel oil in Asia and is one of the largest suppliers in the Singapore marine fuels market, the world's largest. Chemoil supplies about 200,000-300,000 tonnes of bunker fuel monthly.
It is also expanding into the Fujairah bunkers market, the second-largest in the world, following a joint-venture agreement with a Middle East trader, that will see the construction of a 326,000 cu m oil terminal by 2009.
The expansion of Chemoil's tank storage is in line with the overall capacity growth in the city-state, which will more than double to about 12.32 million cu m by end-2008.
'If Chandran gets his way, Chemoil will triple in size over the next five years and control a large fleet of oceangoing tankers.'
That's why has to be patient with this stock...it's for the long term....buy and hold....
CHEMOIL
Jonathan Boonzaier Singapore
You have to excuse the big smile on the face of Robert Chandran, president and chief executive of
Chemoil, one of the world?s largest marine fuel-oil suppliers. The past year has been a very successful
one for him. While shipping companies bemoan the negative effect record high bunker prices have been having
on their bottom line, Chandran has been making record profits of $57.8m on an annual turnover of $4.3bn.
If Chandran gets his way, Chemoil will triple in size over the next five years and control a large fleet of oceangoing tankers.
After a successful initial public offering (IPO) on the Singapore exchange last December, Chandran, who took up Singaporean citizenship in 2005, has become the talk of the town ? his name was even mentioned as an example of the new breed of global players by Singapore?s second finance minister in a recent budget speech. He takes this in stride, claiming that most people could be successful in business if they just dream and go for it. "I encourage people to choose something that they are passionate about. The most successful people are the ones who follow this path rather than only think about what
will make them the most amount of money in the shortest period of time," he said. Chandran?s story is a classic
rags-to-riches tale. He left his native India for the US in 1976 at the age of 25. All he had was his passion
for the oil industry and the goal to be a millionaire by the age of 30. He coupled that with a lot of determination and $10,000 he borrowed from his Filipino mother-inlaw. Chandran loves to tell the story of how, when studying at the Asian
Institute of Management in the Philippines, he barely had enough cash to buy a cup of coffee at the school cafeteria.
"My fellow students knew how poor I was. They laughed when I told them I was going to be rich," he said.
Now Chandran can have the last laugh. His wealth, based on his family?s 45% stake in Chemoil, stands at over $300m. This does not take into account his private investments. Chandran founded Chemoil in 1981, shortly after he made his first
million in the real-estate market at the age of 29. The company, in which Japan?s Itochu later took a 50% stake, has since grown The most important question shipowners say they would like to ask a marine fuel-oil supplier like
Robert Chandran, is what they can
expect to pay for bunkers in 2007.
Chandran points out that crudeoil
prices are the driving factor. He
predicts that these prices will remain
at between $55 and $65 per
barrel but only if external factors
remain stable.
"I think shipowners can budget
on crude prices averaging at $60
per barrel for the year, which
would see bunker prices in Singapore
at around $280 per tonne,
Rotterdam at between $240 and
$250 per tonne and New York at
$250 to $270 per tonne," he said.
As for his predictions about the
overall marine-fuel industry,
Chandran believes the industry is
on the cusp of a major consolidation
drive.
Chandran tips consolida Robert Chandran:"My fellow students knew
how poor I was.They laughed when I told them I
was going to be rich."
REASON TO SMILE: Chemoil president and chief executive Robert Chandran and a transfer of bunkers in progress.
www.tradewinds.no 9 March 2007 TradeWinds 23
CHEMOIL
one of the world?s largest independent
bunker suppliers. From
its initial start-up base in Los Angeles,
it now operates out of Houston,
Panama, New York, Rotterdam
and Singapore, with Fujairah set to
come onstream soon.
Breaking into the highly competitive
bunker market was no easy
task for the company, which came
into the market with precious few
credentials.
"What I did was push may way
into the offices of some of the
toughest shipping customers in the
industry. I did for them what no
other bunker supplier at the time
was willing to so ? I guaranteed
that I could meet the orders. After
that, doors opened very quickly,"
Chandran said.
Since its start-up, Chemoil has
branched out beyond marine fuel
oils. Today, it is also a major aviation
fuel, gasoline and diesel supplier
in the US.
Chemoil has to compete against
many other players ranging from
oil majors that have bases across
the world, to smaller players that
have adopted a more regional focus.
Oil prices are high and so is the
financial commitment an operator
needs to make to keep in the game.
Chemoil continues to invest vast
sums of cash to ensure its future as
one of the market leaders. It has
earmarked between $1bn and $2bn
for asset investment over the next
two years. This will include new or
expanded terminals in Singapore,
Fujairah and elsewhere.
Chandran is keen for the company?s
bases to establish an integrated
approach to providing bunkers,
maintaining full control and ownerships
over the process from procurement
to transport, storage and
final delivery to the customer.
"What we are looking to do is
convert expenses into assets. By
adopting the integrated method,
such as we have done with the terminal
in Los Angeles, we are able
to double our margins from an average
of $9 per tonne to $13.50. In
this way, we can increase our profitability
without any increase in
volume.
nkers boom After 25 years in the bunkering
business, Chemoil president and
chief executive Robert Chandran
says he is still surprised with the
lack of professionalism many companies
show when it comes to
procuring bunkers. He says it is
time they adopt a far more sophisticated
approach in sourcing their
fuel-oil requirements.
"Owners think that running a
shipping business revolves around
buying, selling and operating ships.
Those are of course very important
parts of the business but their bottom
lines can still be blown away
by the fuel costs," he said.
It is a reality that many shipping
companies have woken up to, judging
by the numerous publicly listed
operators that have cited increasing
fuel costs as a major contributing
factor to their diminished bottom
lines in recent results briefings.
Chandran believes owners need
to change their thinking behind
bunker procurement and work
with their suppliers to find solutions.
"In many companies, the finance
department does the hedging,
while the operations department
does the purchasing. But there is
little interaction between the two,"
said Chandran, who believes a
more integrated approach is required.
He credits companies such
as AP Moller-Maersk and CMA
CGM for bringing higher levels of
sophistication to their bunker-procurement
procedures.
"These companies treat bunkers
as a commodity and understand the
economics of the fuel-oil business.
They have done very well with
hedging and made big money because
they were able to take advantage
of a rising market. Unfortunately,
many other companies were
caught on the other side of the
fence in 2006," he explained.
Chandran firmly believes the top
managers of shipping companies
need to play a far greater role in
their bunker-procurement strategies.
"It needs the highest level of
decision making because of the
high-risk levels involved," he said.
Chandran also points out there
are a lot of simple solutions that
owners could deploy to bring down
their fuel costs. Large containerships,
for example, usually have a
tank capacity to store enough fuel
for 90 days of steaming. "I don?t see
many operators taking advantage of
this. Why not fill up the tanks when
the costs are the cheapest," he said.
Savvy owners get ahead
"There are too many smaller
players who will have difficulty financing
their business needs," he
said.
Shipowners may not be happy
about the prices they are currently
paying for bunkers but if Chandran?s
predictions about relative
stability throughout the year come
true, they will at least be spared
the havoc that volatile prices in
2006 created on their bottom lines.
ation move
Photos: Jonathan Boonzaier
Robert Chandran is keen to establish
a fleet of oceangoing tankers to
move fuel oil from refineries to the
company?s depots around the globe
to reduce the on average $70m chartering
bill it incurs each year.
The company uses its chartered
tonnage, the bulk of which are products
tankers, to ship crude from refineries
to terminals worldwide.
Chemoil is actively scouring the
secondhand market for panamax,
aframax and medium-range (MR)
products tankers. Ideally, it wants at
least two panamaxes,
two aframaxes,
four to five
MR products
tankers and between
20 and 40
bunker tankers.
Chandran
wants the company
to buy ships
sooner rather than
later and hints
that it is close to
closing a deal for a
panamax tanker. The vessels will be
deployed almost exclusively on inhouse
business.
"We are not a shipping company.
Oil will remain our core business
but owning a fleet of tankers is the
best way to hedge against paying
charter fees," he said.
Just last month, it agreed to take
over a small fleet of tankers Chandran
owns privately through offshore
companies. The deal is scheduled
to go before shareholders for
approval in April.
"When Chemoil was a 50/50 joint
venture with Itochu, there was a
policy that we would not operate
vessels carrying dirty oil. This policy
is no longer applicable now that
we are a public company," he said.
Chandran?s fleet consists of a
panamax-tanker newbuilding, several
7,000-dwt bunker tankers, a
VLCC that is deployed in a storage
role off Singapore and a bulker converted
from a combination carrier
(OBO). The 73,000-dwt Ashley Sea,
a coated products tanker under construction
at New Century Shipbuilding
in China, is due for delivery
shortly. The ship will be used to
carry Chemoil?s own cargoes, although
Chandran hints that he
could be persuaded to part with the
vessel if a good offer is made.
"We have not decided on anything
just yet. We are keeping our
options open," he said.
Chandran?s VLCC, the 225,000-
dwt Anand Sea
(built 1981), was
purchased from
Taiwan?s Chinese
Petroleum Corp
(CPC) for $17.1m
in December. He
is not keen for
Chemoil to use
such vessels for
storage roles.
"Floating storage
for fuel oils
does not make
sense. It is an accident waiting to
happen so we will use the vessel
only as a temporary strategy for new
operations immediate storage followed
by land storage," said Chandran.
Similarly, the 70,600-dwt bulker
Augusta (built 1981) is also a oneoff
venture. Chandran converted
the vessel, originally built as an
OBO to ship fuel oil from refineries
in Venezuela to Chemoil?s terminal
in Los Angeles, into a bulker after it
was considered too old to trade as a
tanker. It operates on a long-term
charter to South Korean interests
but it will not be replaced when it is
withdrawn from service.
Chandran says Chemoil is unlikely
to order any more newbuildings
as it is not convinced that current
pricing levels are justifiable.
Instead, Chemoil is looking for
older double-hull tankers to run between
its terminals.
Chemoil hunting for
secondhand tankers
Robert Chandran:
"We are not a shipping
company. Oil
will remain our core
business but owning
a fleet of tankers is
the best way to
hedge against paying
charter fees."
Rose on talks it may announce some acquisitions.
buy on dip...should touch $1 within 1-6 months...good luck and not for contra
Low volume. This counter will need time to move up. Have to be patient...
Thanks, Happyseah. It is interesting to notice Mr. Robert V. Chandran's extensive actions of enhancing his position since beginging of the year. I believe he views this IPO very different from normal biz owner and has his own plan on this counter which may quite postive to minority shareholders.
| Date of change of Interest | 12-04-2007 |
| 2. | Name of Registered Holder | ROBERT VISWANATHAN CHANDRAN |
| 3. | Circumstance(s) giving rise to the interest or change in interest | Open Market Purchase | |
| # Please specify details |
|
| 4. | Information relating to shares held in the name of the Registered Holder | ||||||||||||||
|
Just bought 10 lots at 78cts on Friday. Last month, made a tidy sum from this stock. Bought at 53cts and sold at 68cts. Next week will move higer than 80cts supoorted by good volume on Friday. Have good faith in this stock.
Business model similar to Olam. Fundamentally very good although it might take time for this share to be truly appreciated by the market. At this price, it has not even reach the upper end of it's initial IPO(US$0.85). Have faith in Robert Chandran. Buy and hold. Looking at past trend, contra not recommended...
now you can take off some profit if you want as near to upper bound $0.84...already asked people not to sell early last time...good luck...and watch $0.84 resistance....else sell before that...if you are a mid-term investor, then hold till $1 by end of year
| Posted: 09-Apr-2007 10:57 | |
 x 0  x 0 |
as expected, the rally from 50 plus cents till the 78 cents region...reached the $0.78-$0.84 for last at least two sessions and meet strong selling force...short term support at $0.74, resistance at $0.78, $0.84...once $0.84 break will head towards $1...else rangebound at around $0.74-$0.78...good luck |
Buy and hold. Slow mover but good potential. This couter is independant of any oil price fluctuation. Resilient business model. Vested for the long term. Will consider letting go at US$1.50 level...