OW Bunker Unit at Center of Fraud Had $2.1 Billion Sales
Time：2014-11-11
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Dynamic Oil, which supplies and trades bunker fuel used in ships, posted net income of $8.9 million for the period, giving it a profit margin of 0.43 percent, according to records filed with Singapore’s Accounting and Corporate Regulatory Authority.
The records cast some light on the Singapore-based company blamed for triggering the bankruptcy of its Danish ship-fuel provider parent and two other units on Nov. 7. OW Bunker, which was valued at almost $1 billion in an initial share sale in March, reported two Singapore employees to Danish police amid claims of $125 million in fraud and separately said it lost a further $150 million on bad risk management.
OW Bunker, which has 38 offices worldwide, didn’t specifically mention Dynamic Oil in its share sale prospectus. Sales from OW Bunker’s Singapore operations accounted for $4.8 billion of its revenue in 2013, up from $2.5 billion a year earlier, according to the sale document. OW Bunker has two other Singapore-based companies: O.W. Bunker Far East (Singapore), the city’s 13th biggest bunker supplier in 2013, and Wilhelmsen Marine Fuels.
Dynamic Oil’s listed directors are its Chief Executive Officer Lars Moeller, OW Bunker Chief Executive Officer Jim Pedersen, Executive Vice President Gotz Lehsten, and Head of Strategic Development Morten Skou. Nobody answered calls to Dynamic Oil and Moeller’s office and mobile phone.
Trusted Company
The company said in its 2013 annual report that it has no significant concentration of credit risk with any single customer. Dynamic Oil uses swap contracts with maturities of less than 12 months to hedge against the floating price physical contracts. The $1 million paid-up capital company had $53 million in bank overdrafts, about $144 million in trade receivables and $71 million in trade payables, according to the Singapore records.
Dynamic Oil described itself on its website as: “A company that works with, and is trusted by all parties in the shipping supply chain.”