As in past years, the oil market continues to produce new challenges and 2019 has been no different. At BB Energy (BBE), the company goal is to overcome these events and ensure that business continues to grow by continuing to hire the best in the field and to increase its foothold in the key areas.
BBE’s long term strategy has placed particular emphasis on the US market and Africa. The US has become a key export market for crudes and LNG and the complexity of the local logistics present further opportunities for new trades. With the expanding team in Houston, we have been able to execute our first pipeline trades, exported LNG from the US and have taken few storage positions in the Americas. This has allowed BBE to expand our oil product business into Central and South American as well as allowing the global book to take advantage of arbitrage opportunities.
In addition to the above BBE continues to make progress on Africa in both the downstream and cargo trading. We have acquired controlling interest in several downstream assets which we will use a trading hub for Central Africa. These infrastructures are now being used to their full potential for example we are now able use both the Kenya and Tanzania routes to enhance our cargo trading as well as over land supply to DRC and the neighbouring countries. These assets have also allowed us to be competitive in winning part of the Zambian fuel supply tender – cementing our strategy and enhancing our in-land profile.
In West Africa, BBE continues its expansion strategy in the field of fuel distribution locally in partnership with indigenous players. We provided financing solutions to enhance our partner competitiveness. All these activities re-enforce our belief that the long-term future of our business is to focus on the last-mile delivery – a strategy that will be deployed in other parts of the world where we trade.
On the LPG front, the group continues to grow its fully-integrated business in Bangladesh and going forward BBE will look for opportunities to emulate the same models in the new markets where we operate.
Due to the above-mentioned strategy the group expects further growth in the 2020sales volume, which are expected to grow at a rate of 10 to 15%
BBE continues to seek the best industry professionals to join the group. This can be challenging but as proven from the hiring made over the past few years – the company has strongly benefited from the skills and knowledge base they bring with them.