Many petrochemical players are foundering but see storage operations as a profitable escape route.
Hong Kongs Titan Petrochemicals Group has suffered a 2009 net loss of HK$535 million (50.8 million), but has seen a surge in revenues from its onshore oil terminals in China.
Following our business restructuring and record losses in 2008 Titan has moved forward with a firm focus on our storage and shipyard businesses, Tsoi Tin Chun, chairman and CEO of Titan, says.
Revenues from Titan's China terminals surged threefold to HK$162 million compared to HK$56 million in 2008. The growth was mainly attributed to higher utilisation rates and increased capacity at the storage facilities.
Utilisation rate for the 12-month period for the 590,000m³ Nansha Terminal Phase I & II facility rose to 78% compared to 59% for the previous year.
The 80,000m³ fuel oil tanks for Nansha Phase II are anticipated to be completed by the end of 2010.
The group's Phase I Fujian Terminal, consisting of 90,000m³ storage capacity for chemicals, also improved its utilisation rate from 43% to 67% during 2009.
Construction of a 100,000-dwt jetty for the Fujian Terminal continues and will be finished by the middle of this year.
The Phase I Yangshan Petrochemical Terminal, near Shanghai, achieved an average utilisation rate of 73% in 2009. Phase II for 600,000m³ is expected to start in the second-half of 2010.
Titan's existing combined storage capacity of 1.225 million m³ will increase to 1.905 million m³ by the end of this year, which is still one-third of its eventual planned total capacity for all the three terminals.