- Total traded volumes of crude and oil products rose 13% to 303 million t
- Revenues fell 38% to US$168 billion
- 6629 ship journeys
- Coal contracted sales fell to 20 million t
- A solid performance across all major business lines
Ian Taylor, President & CEO, said: “Current market conditions are challenging. Whilst the market structure favours a physical trader, the absolute price levels and market volatility are causes for caution. Revenues, which are dictated by absolute prices as well as volumes traded, fell markedly - despite an increase in oil and product trading activity. Whilst opportunities in the physical market continue to exist, we are increasingly vigilant in respect of counterparty risk as current price levels will inevitably test some market participants. This current environment vindicates the extremely cautious approach we have long taken towards risk and debt. We believe it is prudent to continuously review both business lines and asset exposures, and we will manage the business conservatively in these uncertain times. For us, this means focusing on what we believe we do best – that is moving energy around the world – with a real attention to the careful management of each and every trade.”
“Our downstream assets, in particular our refineries, performed well through 2015. However, the broader implications of slowing global growth and a rebalancing of the Chinese economy are likely to impact parts of the portfolio and we expect a slowdown in the rate of demand growth in some energy markets. Notwithstanding, we will continue to invest where the appropriate long-term opportunities arise. We were pleased to acquire the outstanding 50% shareholding in VTTI from MISC Berhad through our investment vehicle, Vitol Investment Partnership. During the five years of co-ownership VTTI evolved into a market leader with a total gross storage capacity of 8.7 million m3 and we will continue to invest and expand the company’s footprint,” he continued.
“The Ghana gas-to-power project in which we are partnering with ENI and GNPC is progressing well. It has the support of the World Bank, which in July 2015 approved a record investment in the project. The project is expected to address Ghana’s thermal generation needs up to 2035. We expect this coming year to be challenging for the oil sector. Demand growth will be in line with long-term averages, but below the high levels seen in 2015. Stocks of crude and products continue to build and these will weigh upon the market. In this context, we shall focus on adding value to our customers and seek interesting opportunities, whilst remaining mindful of increased risks,” Taylor concluded.
Edited from press release by Angharad Lock
Read the article online at: https://www.hydrocarbonengineering.com/refining/25032016/vitol-2015-releases-key-figures-2836/