Seizing opportunity and optimising markets helps Mabanaft grow
To date, 2016 has been characterised by economic and political uncertainty and the UK downstream oil industry has not been immune from the turbulent events that have dominated the headlines. During the first eight months of the year, the price of oil doubled in response to the rebalancing of supply and demand; the pound’s strength against the dollar plummeted after the vote to leave the EU; and the contango market - where spot prices are lower than forward prices - began to fade, affecting product flows and inventory levels in North West Europe.
At Mabanaft we have been working to build a more diverse sales portfolio to help increase our resilience and optimise returns in this volatile market. As an agile organisation we have been able to identify, and respond to, a number of new and exciting opportunities. Being part of a wider group, Marquard and Bahls AG, has also allowed us to leverage partnerships within the group to help us achieve our aims.
This dynamic approach has led to Mabanaft supplying aviation fuel to commercial airlines including low cost, tour operators and scheduled flag carriers operating out of the UK; we are now supplying eight UK airports including Gatwick, Manchester and Edinburgh. Aviation currently accounts for a growing proportion of Mabanaft’s total volume and we will continue to explore opportunities to optimise supply routes to the international and regional airports in order to realise the full potential of this sector.
Owing to improved efficiencies, and a steady increase in the use of Hybrid vehicles, growth in UK diesel consumption is forecast to slow. Mabanaft however is bucking this trend with strong growth in diesel sales particularly in the South East. Here, increased buying power achieved through an integrated supply strategy with Mabanaft Hamburg, has resulted in improved supply economics, the benefits of which we have been able to pass on to customers to foster growth.
Finally, we have recently successfully upgraded our trading system. The project, which took place over several months, will deliver a number of benefits to our customers such as the opportunity to automate the transfer and receipt of lifting reports and deal summaries. The new software is now being integrated with MabaLIVE, our online trading system. Streamlining our deal communications, and improving visibility and accuracy of transactions, will be of very real benefit to our customers ultimately saving them both time and money.
To find out more about Mabanaft on 0207 802 3300, email email@example.com or visit www.mabaLIVE.co.uk
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