Hong Kong-listed Brightoil Petroleum’s profit increased 131% year on year (y/y) to HKD1.39 billion (USD179.4 million) for the year ended 30 June because of gains on derivative financial instruments.
During the period, Brightoil Petroleum gained HKD1.24 billion on fair value change of derivative financial instruments. For the year ended 30 June, the company posted HKD227.38 million in losses in the segment, a stock filing of the company said on 23 September.
The company’s revenue slid 12.3% y/y to HKD74.10 billion because of the plunge in prices of petroleum products, including bunker fuels.
Its fleet expanded to 12 vessels for the period, after acquisition of two new bunker barges from China.
The fleet’s revenue grew 28% to HKD1.37 billion.
“Our strategy of focusing on Chinese imports and the Chinese state-owned oil companies continues to pay dividends,” the company said.
During the period, more than 75% of its total revenue generated by the fleet was derived from transporting cargoes into China and this ratio increased to 80% for its VLCC fleet. From January to June, 100% revenue of the VLCC fleet came from trade to China.