Market Review Despite the current downward trend for the Oil & Gas sector globally and low oil prices, the LgT-1 and LgT-2 continued to provide a stable revenue flow to the Group in 2016 as the terminals’ capacity rental is based mainly on long-term, take-or-pay contracts. These contracts provide a stable source of income, leading to relatively consistent margins for contracted storage. Key developments In 2016, it was business as usual for the Tank Terminal business with both terminals continuing to operate 42 oil storage tanks with a total storage capacity of 647,000 cbm for petroleum products. All of the storage capacity has been contracted to customers. Both terminals, which are ISO 9001, ISO 14001 and OHSAS 18001-accredited, achieved a cumulative 1.5 million manhours without a LTI. Moving forward While the Tank Terminal industry rely on economic growth and trade activity, both the Langsat terminals will continue to enjoy secured income based on the long-term fee-based contracts. 81 Performance Review
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