Uni-Fuels (UFG) Registration Filing summary

Company overview and business model

• Provides marine fuel solutions, including marketing, reselling, and brokering of VLSFO, HSFO, and MGO to shipping companies and marine fuel suppliers globally, with headquarters in Singapore.

• Operates through two models: direct sales (with value-added services like trade credit and risk management) and brokerage (earning commissions as intermediary).

• Arranged marine fuel supply at 103 ports worldwide for 88 customers over the last two years, with a strong presence in Southeast and Northeast Asia.

• No long-term contracts with customers or suppliers; transactions are on a per-order basis.

Financial performance and metrics

• Revenues grew from $30.8M in 2022 to $70.8M in 2023, and $74.2M for the first half of 2024.

• Net income was $1.2M in 2023, down from $2.0M in 2022; net income for the first half of 2024 was $0.1M.

• Gross profit margin declined from 7.8% in 2022 to 3.2% in 2023, and to 2.0% for the first half of 2024, reflecting a shift to direct sales and competitive pricing.

• Positive working capital of $3.7M and cash of $4.0M as of June 30, 2024.

• Major revenue concentration risk: in 2024, one customer accounted for 15% of revenues; in 2022, four customers accounted for 75% of revenues.

Use of proceeds and capital allocation

• Plans to use 80% of net proceeds (~$5.6M) to scale up reselling activities and gain market share.

• 15% (~$1.0M) allocated to workforce expansion and new geographic markets; 5% (~$0.4M) for cash reserve and general corporate purposes.

• Intends to increase trade financing facilities and invest in working capital to support growth.