Executive Summary
Fortune Oil PLC operates in the gas and oil industries trhough various subsidiaries and joint ventures, developing and operating projects that supply fuel to homes and businesses. The company is headquartered in Hong Kong, and is listed on the London Stock Exchange. It operates oil terminals and supplies natural gas to China, in partnership with other oil and gas companies based in China.
The Group operates in four key segments: natural gas, single point mooring facility, aviation, and oil trading terminal and office overhead. It has operations on the UK, the PRC, and Hong Kong.
Company History
The company was founded in 1993, via a backdoor listing based on the development of a single-buoy mooring project in Southern China and the prospects of further oil related infrastructure projects developments in China.
Current Events
- February 2009: it was announced that the Liulin coal bed methane project in China will receive state funding, accelerating exploration of the gas field, but reserving Fortune's investment rights
- April 2009: the company announced a 66% rise in revenue for 2008, compared with 2007
- May 2009: it announces a 44% increase in natural gas sales for Q1 2009
- June 2009: the company acquires a 35% interest in Xinyang Compressed Natural Gas Stations for £2.1m but is guaranteed a higher price for gas supplied as part of the deal
- August 2009: the company announces an H1 2009 increase in revenue of 27%, and and increase of 45% in gas sales to 225m cubic meters [1]
Business Model
The company operates in the gas and oil industry, primarily in China and Hong Kong.
Products/Services
The company's key business areas are as follows:
OIL: Bluesky - aviation refuelling business; West Zhuhai Products Terminal; Maoming SPM; Trading
GAS: Fortune Gas upstream, wholesale and retail.
In 2008, the following volumes of energy were traded:
- Bluesky: 1.7m tonnes
- West Zhuhai: 1.9m tonnes
- Maoming SPM: 9.1m tonnes
- Fortune Gas: 354m cubic meters.
Segments/Customers
Production/Operations
Distribution/Routes to Market
Gas is distributed through spur pipelines and city gas networks as LPG and CPG.
Market & Competition
Main Competitors
Fortune Oil's main competitors are CNPC, [2] PetroChina, [3] and XinAo Gas. [4]
Management
Bruce McGowan retired from the position of Vice Chairman in April 2005, a position he had held since 2000. Details of the current key board members are provided…
