Fundamental Aspects Of Marine Fuel Stakes

ByAyesha Collins

Fundamental Aspects Of Marine Fuel Stakes

Companies engaged in the production, distribution, and wholesale purchase of marine fuel oil are good candidates for investments in the sector. In addition to Singapore, Andatee China Marine Fuel Services Corp. (NASDAQ: ANDTA) operates in China. Its key activities include manufacturing, storing, and distributing fuel oil. As of June 30, Andatee has signed an equity transfer agreement with Mashan Xingyuan Co., Ltd., which will see the Singapore-listed company acquire 52% of the subsidiary. The company will also assume RMB 0.54 million in debt, and it is expected to close its acquisition with the company by the end of the year. Find out here

As environmental legislation puts increasing pressure on ship owners, managers, and operators, the marine industry is looking to use cleaner, lower sulphur fuels. The new international Maritime Organization regulations are requiring that shipping companies switch to cleaner fuels to comply with environmental regulations. While this change in fuels has been slow, it has already sparked a wave of investments in alternative fuels. While it has remained largely unaffected by the changes, many companies are making the switch to more environmentally friendly sources of fuel.

The cost of marine fuel is rising, and there is an opportunity for investors to profit from it. However, a lower sulphur fuel may not be the best choice for a fleet, and the costs are higher. In some cases, lower sulphur fuels might even prove to be too expensive. In these cases, companies should consider the costs and benefits of changing their fuel source. If the cost difference is significant, the dividend yield is likely to increase significantly.

A recent deal between Andatee and Mashan Xingyuan will give them control of the latter’s assets. Unlike other companies, Andatee will assume the debt owed by the company. Moreover, the acquisition will help Andatee make a profit on the asset. This deal will make the combined company a more profitable and stable company. The shareholders will be rewarded for their efforts, and it is a win-win situation for both parties.

Besides the fuel supply, the company will also own the assets of Mashan Xingyuan. This company is a blended marine fuel retail outlet in Shandong province. Its three 500 cubic meter storage tanks will be used by Andatee. The company will also have the rights to the land that the two companies own. It will be a part of the merger. This deal is a good investment in the sector.

Another merger is in the marine fuel business. The two companies plan to merge. Andatee will acquire Mashan Xingyuan, a blended marine fuel retail outlet in Shandong province. Both companies will own the company’s three 1,000 and 500 cubic meter storage tanks. Additionally, both will receive 3,600 square meters of land. With these deals, they will control all the assets and will own the ship’s infrastructure.

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