German-based tank storage logistics provider Oiltanking, part of the Marquard and Bahls Group, has reported ‘good’ year-end profits for 2019.
Marquard and Bahls says that the markets in 2019 were more stable than in 2018. The demand for petroleum products tank space remained high throughout the year, with some regional variations, although the demand for tank space for chemicals and associated storage capacities slowed. High capacity utilisation at almost all of Oiltanking’s terminals meant the unit’s result is significantly above expectation.
By the end of 2019, Oiltanking operated 63 tank terminals in 23 countries, with a total capacity of 20m m3 and a throughput of 155m t. It employs around 2,900 staff.
The outlook for Oiltanking in 2020 is good in all three business regions – EMEA, the Americas and APAC – with the current coronavirus pandemic expected to have a positive effect on demand. 2020 will see the unit focus on its Strategy 2025 to achieve growth targets. Oiltanking will focus particularly on growth in the areas of chemicals and gases handling, and look to further strengthen its safety performance and sustainability.
Overall, Marquard & Bahls reported pre-tax profits of €108m and operating revenues of €13.095bn. In 2019 the group completed its portfolio adjustment, to focus on its core activities of tank storage logistics, trading, and aviation fuelling, with some innovative investments in the energy and chemicals sector. It had announced a withdrawal from biogas and carbon trading at the end of 2018, and later in 2019 divested assets in bulk handling and utilities. The group’s trading and supply arm Mabanaft also reported good profits, while profits at its aviation fuelling arm Skytanking stagnated, but this was due to investment and expansion into the US and Spanish markets.
The group says that all operating units will expand further and its portfolio will diversify, particularly into chemicals and sustainable investments, although decisions will be made in the light of the current coronavirus pandemic. The group warned that Skytanking is likely to continue to suffer as a result of the ongoing effects of the pandemic on the aviation industry.