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RE: Marsulex acquires Oxbow coke handling

Home Forums Coking News: DCU, Upgrader 1.Coker (registered users only) Marsulex acquires Oxbow coke handling RE: Marsulex acquires Oxbow coke handling

#7617

Charles Randall
Participant

This has been in the rumor mill for a while now. But it looks like Oxbow has sold off its refinery side handling & coke cutting operation to Marsulex for $27M. Most of there presence in this business segment  was from their acquisition of Aimcor petcoke marketing group and Brian was never sold on marketing benefit of taking on higher risk / lower margin part of petcoke portion of business ( numbers here look like 6% return – $3M net from $9M Gross profit on  $44M revenue). 
 
Original approach for resellers/marketers taking this tack was having the handling contract at refinery site would give them edge (and lower logistical cost control) on petcoke marketing segment. But it tended to backfire as most refineries often chose to go with company that wasn’t doing the bulk handling services to keep from becoming too dependent on one company. Koch Carbon has also exited this service segment of the business as well.  The roll has been going to the Logistic providers like Savage Trucking,  Kinder Morgan terminal & handling, and other companies.
 
Marsulex seems to have lot different base than Oxbow = Enviromental compliance & Producer/Marketer of Sulfur, which are related facets of petcoke/refining sector but more growth opportunity given the opposite directions crude supply and product quality are headed?
 
The petcoke handling and coke cutting end of the business has been outsourced by refineries because of the high cost, health and safety risk involved with performance of this portion of the petcoke production.

Regards

Charlie Randall
Pace Global Energy Services
Project Manager
808 Travis Street Suite 1107
Houston, TX 77002
Direct: 713-315-5666
Mobile: 281-813-2669
Fax: 713-222-7520
Email: randallc@paceglobal.com
 

 

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