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According to Mindaugas Navikas, KN Commercial Director, according to the information available, it is currently difficult to specifically assess the possible impact of such a decision by BNK on KN activities. However, until the CN customer resumes normal trade volumes when loading petroleum products through Klaipeda, the probability that the Belarusian cargo will not be shipped to Lithuania is considered real enough and therefore it is necessary to prepare for various business scenarios.
“Judging from the economic arguments, the infrastructure in Klaipeda is the most favorable for the export or, if necessary, the import of Belarusian oil products. We are currently working with customers in Belarus on a regular basis, we have scheduled cargo for the future. However, we understand that clients’ decisions are likely not dictated by economic but political logic, which we cannot control. We carefully evaluated all the information available to us from Belarus this year and adapted our business plans accordingly by diversifying our activities, expanding the range of services and clients ”, Mindaugas Navikas, Director of CN Commerce, is quoted in the press release.
According to the head of trade of the CN, taking into account the uncertainty about the situation in Belarus that arose this year, in 2020. KN dedicated to finding new business opportunities. These include oil storage services, the demand for which has grown significantly this year due to the coronavir pandemic and historically low refining margins.
“In 2020, KN was able to successfully respond to changing customer needs and offer storage options for petroleum products. We also see increased demand for oil terminal tank leasing and product storage on long-term contracts. We have entered into a series of contracts for this service, including gasoline tank leases, which will allow us to use the existing infrastructure. We see this as a fairly stable alternative to handling light petroleum products “, emphasizes M. Navikas.
Along with the development of storage services for petroleum products and growing demand, the company plans to expand the scope of handling operations from ship to ship, taking advantage of the flexibility of the managed infrastructure.
“Our competitive advantage is that we are a multimodal terminal where petroleum products can be unloaded from all vehicles and loaded onto all vehicles. We currently load a double-digit amount from different loading positions at the terminal, such as conventional petroleum products, petrochemicals, and various biofuels. In KN’s commercial strategy for 2030, we foresee a greater diversification of the portfolio of products and services to avoid the dominance of a client or a load ”, emphasizes the Commercial Director of KN.
In the first 9 months of this year, KN received 23.7 million LTL in the oil business segment. Adjusted net profit from these activities amounted to 6.7 million euros (23.9 million euros a year ago). (7 million euros in the corresponding period in 2019). By evaluating company and market analytical data, KN remains the most efficient company using the capacity of its oil terminals in the Baltic countries.
BNK (UK) Limited is owned by ZAT Belaruskaja neftenaja kampanija, the largest exporter of petroleum products in Belarus.
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