Marine Transfer Activities - SPT
SPT generated an EBITDA of negative USD4.6 million for the full year 2007 (negative USD0.6 million for 2006).
SPT is the largest marine transfer company in the world, providing transfer of crude oil and LNG, primarily in the waters off the US coasts. In 2007 it initiated services in European waters, as well as off West Africa, following the acquisition of a specialized company based in UK, now named SPT Marine Services. SPT handles around 900,000 barrels of oil a day, equating to roughly 11 per cent of US seaborne oil imports.
European marine transfer activities for SPT are continuing to grow steadily, with business in the Mediterranean particularly encouraging. Our marine transfer support operations have also been satisfactory in the US west coast in 2007.
As SPT maintains its push to develop operations in the LNG marine transfer market, the company completed trials of marine transfers of LNG in US coastal waters – the first ever of their kind. SPT now also undertakes the business of managing port operations at LNG receiving facilities around the world and sees this as a growing area as it seeks to utilize its competence in this specialized field of marine transfer business.
SPT experienced a year with challenging trading conditions. The high chartering-in cost of tankers to cover customer contracts continued to impact the business throughout the year and this was compounded in 2H2007 by a reduction in volumes handled on behalf of customers. The excess capacity resulted from lower volumes arising from unplanned maintenance activities at offloading centres and the drawing down of US oil stocks. The temporary short-term excess tanker capacity that was created could not be utilized in the low returning spot markets at satisfactory rates.
On the positive side, SPT took delivery of four specially designed and constructed new vessels during the year and these vessels began operations late in 2007 and early 2008 in the US Gulf. Between January and spring 2008 the company will take delivery of a further two Aframax tankers, all on 15-year (10-year fixed, with a five-year option) bareboat agreements. These new additions to SPT’s fleet will provide the company with much greater flexibility in its activities and enable a return to profitability in 2008.