|
In January 2023, AP Oil Pte Ltd commissioned a state-of-the-art, fully automated rotary filling line, to fill and pack lubricants into small bottles ranging from capacities of 1L to 5L. As part of the company’s efforts to automate more of our processes, the line is equipped with an automatic case packer and robot arm palletizer, requiring minimal human intervention. This line is expected to increase our throughput for small packs by more than 3 times. To support higher throughput for the small packs, new blending and storage tanks were installed beside the filling line, with more control features to produce high quality products for our customers. We expect to have a higher overall annual blending capacity.
In February 2023, installation of solar panels was completed on the rooftop of our Administration building, to generate approximately 180 MWh of clean energy annually, sufficient to partially cover our energy usage. Beyond reducing carbon footprint, our exposure to fluctuating utility prices is partially reduced.
After a four years hiatus, due to the Covid-19 pandemic, the Group resumed its annual dinner in March 2023. The board, management and employees enjoyed the good and fun interaction with lots to catch up over dinner. It was at this event that Chairman presented a special 40 years’ service award to a dedicated, diligent and valuable employee. The conduct and performance of this long service employee was highlighted, that epitomized the Group’s core values of diligence, sincerity, loyalty and harmony.
Performance by Business Segments
Manufacturing
Manufacturing segment accounted for 65% or S$39.7 million of the Group’s revenue in FY 2022 (FY 2021: 49%, S$27.5 million). Manufacturing comprises mainly blending of lubricating oils and specialty chemicals.
For lubricating oil, AP Oil Group operates three blending plants: two wholly owned in Singapore and one in a Vietnam joint venture (AP Saigon Petrol) – these plants produce a wide range of lubricants for automotive, industrial and marine applications. Our lubricants are marketed mainly under the brand name of “AP Oil” and “SIN-O”.
For specialty chemicals, these are produced by two of our wholly owned subsidiaries namely A.I.M. Chemical Industries and GB Chemicals.
|
|
Trading
Trading segment covers purchase and sale of raw materials used for lubricants and specialty chemicals manufacturing, namely, base oil, chemicals and finished products purchased from third party.
This segment accounted for 35% or S$21.5 million of the Group’s revenue in FY2022 (FY2021: 51.0% or S$28.1 million). The lower year on year revenue was mainly from lower base oil and finished product sales.
|
Performance by Geographical Markets
AP Oil Group exports a full range of lubricants and specialty chemicals to customers in several regions. Main markets in FY2022 were Singapore, SoutheastAsia, Middle East and Indian subcontinent.
Singapore was the largest market, recording 71% of the Group’s revenue for FY2022. Sales in Singapore increased by S$6.8 million to S$43.7 million – include marine lubricants sold to foreign customers but delivered to vessels calling at the Singapore port, and specialty chemicals sold to Singapore-based multinational companies for export.
Sales to Southeasr Asia, was the second largest market contributing 16% or S$9.6 million to the Group’s revenue in FY 2022. This was followed by Middle Easr with 4% or S$2.5 million to the Group’s revenue in FY 2022.
Indian Subcontinent accounted for 2% or S$1.4 million of the Group's revenue in FY 2022. Other markets made up the balance of 7% or S$4.0 million of the Group’s revenue in FY 2022.
|