Oiltanking; Company Analysis
Oiltanking is a tank storage logistics company that has been operating in the industry since 1972. It is also regarded as one of the largest independent operators in the field of tank terminals for oils, gases, and chemicals globally.
- Oiltanking first came into existence in 1972; all the independent tank terminals were pooled together in Oiltanking GmbH. In 1990, the company's first official headquarters were opened in Admiralitätstraße.
- Between 1994 and 1996, two entities were founded; Oiltanking Deutschland GmbH and Oiltanking Argentina S.A. By the end of 2005, the company had already expanded its presence in multiple international locations including, China and the Middle East.
- Estimated revenue for 2017 amounted to $211 million (fourth quarter) and in 2018, it was $210.9 million (fourth quarter), and in 2019 (3rd quarter) is $200 million.
- "The company owns and operates 65 terminals across 23 nations. It has a total storage capacity of 20 million cbm, and is currently operating in multiple continents; Europe, North America, Latin America, the Middle East, Africa, and the Asia-Pacific region."
- Ideal client groups of Oiltanking include oil companies that are either funded by state or are privately held, refiners, companies operating in the petrochemical industry, and independent dealers who trade in petroleum products and chemicals.
- Oiltanking has a strong competitive edge over its competitors; it provides an entirely customizable infrastructure to its clients. Additionally, for the construction of capital-intensive terminal facilities, the company has its parent company to add to its financial strength.
- The company has a strong operational presence across multiple continents; it is an ideal option for global energy companies.
- Additionally, Oiltanking is engaged in several other industry verticals, too, which add to its competitive advantage. The verticals include "engineering, procurement, and construction (EPC) of tank terminals, pipelines, refineries, and power plants." This gives their clients an extra edge as they can find multiple service options under one roof.
- The expanded regional structure of the organization was perceived as a weakness of the organization since the expanded structure was hard to tackle. The recent strategy focuses on simplifying the regional structure bifurcation, which will bring it down to 3 from 8. This design is expected to add the value of the entire regional structure. The new structure will be bifurcated as Americas, EMEA (Europe, Middle East, Africa) and APAC (the Asia Pacific including China and India).
- The transportation and storage of petrochemical products involve a high risk of spillage, which directly poses a threat to the environment. While the risk can be reduced with the help of preventive measures, it cannot be eliminated completely.
- The core focus of the company has always been on petroleum storage with more than 50 terminals in 21 countries; however, the company hasn't really expanded its presence in gas and chemical storage segments. There are only about nine gas storage plants located across seven nations, and there are only 24 chemical storage terminals owned by the company. The company is thinking of optimizing its corporate structure to resolve this issue.
- The company has several storage plants and subsidiaries in Europe and several of which have seen positive results in the recent financial evaluation round, mainly due to the strategic contracts. Adverse market conditions and strong market competition were some of the challenges faced by the subsidiaries of the company, but they all had strategic agreements with some of the biggest and most profitable industrial entities, which stood as their strength.
- Innovation is also perceived as its biggest strength, and one of the most recent examples of the same is the construction of the world's largest butane tank with a capacity of 135,000 cbm in Antwerp. This tank exceeds expectations in terms of both innovation and design.
- Over the years, the company has collaborated and partnered with several companies and has also acquired multiple storage terminals, which has helped in its overall expansion; its strategic approach is one of its biggest strengths.
Names of Some of the Clients
- Enterprise has previously been a customer of Oiltanking.
- Shell Singapore and Dow chemicals are two important clients of Oiltanking.
Executive Team of the Company
- Matti Lievonen is the chief executive officer at Oiltanking.
- Koen Verniers, and Daan Vos have previously worked as the managing directors of the company.
- Jörg Walter is the head of corporate communication.
- Douglas van der Wiel is the senior vice president for the EMEA region.
We were unable to provide information about the growth of the company, particularly due to the lack of publicly available data. We searched through media and market publications, official and unofficial documents released by the company and its parent company, third party company databases, SEC filings, and other important sources. Still, we were unable to provide the required information.
First, we approached the company website to find the annual reports of the company; however, Oiltankings only provided annual reports of its parent company. We searched through the given annual reports; however, there were no explicit mentions of the revenue earned by the Oiltankings. The report provided a general overview of Oiltankings financial year, and it also provided an outlook of its subsidiaries, but revenue or sales figures were not revealed for Oiltankings and its subsidiaries.
Next, we combed through a variety of market and media publications to capture any mentions of the company and its annual revenue, since such sources usually provide financial information about companies they are mentioning. We scrolled through Logistics Insider, Forbes, Downey Magazine, Huston Business Journal, these media sources contained mentions about Oiltanking; however, they had no information about its revenue.
We also viewed several market publications, including Market Watch, Yahoo Finance, Market Expert, and several others. We were hoping to find Oiltankings revenue information because market research portals like Market Watch usually have company profile pages for trading companies, and they also publish news articles about important companies. We couldn't find any relevant mentions about the company or its financial information. We could only find several mentions of its strategic collaborations and partnerships.
We also tried searching for alternate data to perform a triangulation; we searched for oil and gas storage and logistics market analyses to find the key players in the industry and their overall market share in terms of revenue. We were hoping to triangulate the revenue figures through the market share. While Olitanking was mentioned as a key player, other vital pieces of information like market share, annual revenue, EBITDA were not revealed by any of the market research portals and were all paywalled.
We also searched for SEC filings from Oiltankings; however, no such sources were found in the directory. Sources were found for Oiltanking Partners, which is a subsidiary of Oiltanking GmBH. The filling source contained no relevant pieces of information.
Since these strategies did not provide any fruitful results, we finally approached third party company databases because they usually provide an estimated revenue figure for the company, and they also offer a competitive outlook for the revenue changes that have taken place over the years. We searched through Hovers D&B, Zoominfo, and several other third party databases. Each of these provided different estimates, and most sources did not offer any information about the previous year's revenues. ZoomInfo was the only source that provided revenue figures for the four quarters of 2018 and three quarters of 2019. Since it provided no information about 2017, we traced an archived version of the page to find the 2017 revenue figures for the company. We were able to provide estimated revenue figures for three years (2017-19), but these figures are merely estimations, and therefore, they cannot be completely relied upon.
We have carefully analyzed the official documents of the company, their press releases, their annual magazine, and all other important company resources to provide a detailed analysis of the company's weaknesses and strengths. Since companies usually do not provide explicit statements about their perceived weaknesses, we have based our findings on facts and figures offered by the company. Due to the lack of publicly available data, we had to use a couple of outdated sources, which contained highly relevant information about the company and its clients. Old company reports have also been used to provide extra clarity to the research.