Bunker Holding is now launching a new company in Dubai, which employs virtually all the former staff of recently wound-down Endofa DMCC, and which also shares the same address.
Bunker Holding CEO Keld R. Demant confirms to ShippingWatch that the company has taken over several former employees of Endofa in Dubai, which is currently being wound down. These employees will instead work at new company PSTV Energy.
The way I see it, Endofa had jointly decided that there was no further basis for keeping the business going in its current shape"
The name of the new company seems to lean on Endofa's longtime slogan "Positive Energy." The company was established last summer, and this was even done by Endofa's Danish lawyer Thomas Bindseil-Hansen.
PSTV Energy is headed by one of Endofa's co-founders, Mads Uldall Borggaard.
The company will do so-called cargo trading – a business focused on providing bunker oil to other suppliers, and typically in large volumes.
No basis for business
Endofa was established back in 2012-2013 by several former employees of Danish bunker company Monjasa with Endofa's current CEO Kenn Søndergaard and his wife, Maria Therese Lysgaard Søndergaard, one of the heirs of Herning Shipping and oil company Uno-X's family dynasty, as primary investors.
Endofa has in its first three years suffered sizeable financial losses and, starting this year, the company has wound down several activities and has, in addition to its office in Dubai, also closed its fairly new headquarters in Copenhagen. A process which, according to Kenn Søndergaard, was begun earlier last year.
"The way I see it, Endofa had jointly decided that there was no further basis for keeping the business going in its current shape. So we decided to establish a new setup in Dubai headed by Mads Uldall Borggaard, where he's doing the same work he skilfully did at Endofa. Just at a different firm," says Demant.
Endofa is not part of the new PSTV Energy, he notes.
According to ShippingWatch's sources, all the former Endofa employees, with a simple exception, have been employed at the new company, which has the same address in Dubai as the now-defunct Endofa DMCC.
Small unit at Bunker Holding
Demant sees PSTV Energy as a fairly small unit under Bunker Holding, the world's second-largest bunker company measured in sold bunker oil volumes, with Dan-Bunkering as the by-far biggest business unit.
Most recently, Bunker Holding established a new bunker company under the name Bunker One, which with offices in London and Singapore will work to secure more long-term agreements with major customers.
Endofa in 2016 delivered its first profit since the company was established. After losing close to DKK 100 million (USD 16.5 million) in the first three years, the company was able to achieve a positive bottom line in 2016 with a profit of DKK 3.5 million against a deficit of DKK 15.1 million in 2015.
Despite the profit, 2016 became another difficult year for Endofa, which in September that same year was sentenced to pay DKK 6.9 million to carrier d'Amico International Shipping in relation to a controversial oil transaction in West Africa. A case which, according to ShippingWatch's sources, has yet to be settled.
It's true that we've said goodbye to several people and that going forward in a more simple setup, Endofa plans to operate selected niche businesses"
Shortly after the turn of the year, ShippingWatch reported that two senior executives from Endofa, CFO Torben Okkels and the head of the company's Dubai office, and now head of PSTV Energy, Mads Uldall Borggaard, had both left the company.
Okkels was hired in 2015 as CFO in order to sort out the finances, risk management and accounting, and he also spearheaded a turnaround at the company.
"It's true that we've said goodbye to several people and that going forward in a more simple setup, Endofa plans to operate selected niche businesses which include Central America, France and some ports in West Africa," Søndergaard wrote in a brief email to ShippingWatch:
"Our back-to-back business and large-scale [trading, -ed.] activities have thus been shut down as part of a process that we started earlier last year."
Costly venture in West Africa
In its first years, Endofa was weighed down by activities in the bunker market in West Africa.
Endofa had, along with Bunker Holding-owned Dan-Bunkering, established a joint venture in 2014 under the name Oleum.
The venture aimed to offer high quality physical bunker fuel deliveries from its own chartered vessels in the commercially difficult region, but the collaboration was suspended in 2014 after one of the ships was hijacked and a large financial loss.
English Edit: Daniel Logan Berg-Munch