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Morgan Stanley Sells Australian Diesel Terminal to BB Energy
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As part of its efforts to move away from physical commodity business, Morgan Stanley (MS - Free Report) divested its diesel terminal in Australia to Lebanon-based BB Energy, an oil trader. This news was disclosed by the trading company. Morgan Stanley, however, made no comment about the deal.
The Australian terminal in Mackay, Queensland with a 75,000 cubic meter diesel tank farm was owned by Morgan Stanley through Pioneer Energy Holdings PTY.
For BB Energy, the deal marks its entry into Australia as it plans to open an office in Brisbane by the next month. Notably, its subsidiary, Wala B Terminal Holding PTY Ltd. is acquiring the Mackay terminal.
BB Energy’s chief executive Mohamed Bassatne said, “With the ongoing recovery of the mining sector and our diesel sourcing and trading network in the Far East, we believe we can play a role in the Australian market.”
For Morgan Stanley, the deal is in line with its strategy to focus on core operations. In 2015, the company divested its physical oil business and trading team to Castleton Commodities International LLC. Nonetheless, it retains interests in oil tanker operator, Heidmar and a marine services firm. Earlier in 2014, the company sold its stake in TransMontaigne Inc. – an oil storage, marketing and transportation firm.
Following the sell-off of these physical commodity operations, Morgan Stanley has been focusing on strengthening its wealth management business. These efforts have proved beneficial and the company’s profitability improved over time.
Over the last one year, Morgan Stanley’s shares have returned 69.5%, outperforming the Zacks categorized Investment Brokers industry’s gain of 42.1%
Apart from Morgan Stanley, many other major global banks including JPMorgan Chase & Co. (JPM - Free Report) , The Goldman Sachs Group, Inc. (GS - Free Report) , Barclays PLC and Deutsche Bank AG (DB - Free Report) have been also moving away from physical commodities operations. Higher capital requirements, lower profitability and heightened regulatory scrutiny are the primary reasons for the growing disinterest.
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Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
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Morgan Stanley Sells Australian Diesel Terminal to BB Energy
As part of its efforts to move away from physical commodity business, Morgan Stanley (MS - Free Report) divested its diesel terminal in Australia to Lebanon-based BB Energy, an oil trader. This news was disclosed by the trading company. Morgan Stanley, however, made no comment about the deal.
The Australian terminal in Mackay, Queensland with a 75,000 cubic meter diesel tank farm was owned by Morgan Stanley through Pioneer Energy Holdings PTY.
For BB Energy, the deal marks its entry into Australia as it plans to open an office in Brisbane by the next month. Notably, its subsidiary, Wala B Terminal Holding PTY Ltd. is acquiring the Mackay terminal.
BB Energy’s chief executive Mohamed Bassatne said, “With the ongoing recovery of the mining sector and our diesel sourcing and trading network in the Far East, we believe we can play a role in the Australian market.”
For Morgan Stanley, the deal is in line with its strategy to focus on core operations. In 2015, the company divested its physical oil business and trading team to Castleton Commodities International LLC. Nonetheless, it retains interests in oil tanker operator, Heidmar and a marine services firm. Earlier in 2014, the company sold its stake in TransMontaigne Inc. – an oil storage, marketing and transportation firm.
Following the sell-off of these physical commodity operations, Morgan Stanley has been focusing on strengthening its wealth management business. These efforts have proved beneficial and the company’s profitability improved over time.
Over the last one year, Morgan Stanley’s shares have returned 69.5%, outperforming the Zacks categorized Investment Brokers industry’s gain of 42.1%
Currently, Morgan Stanley carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Apart from Morgan Stanley, many other major global banks including JPMorgan Chase & Co. (JPM - Free Report) , The Goldman Sachs Group, Inc. (GS - Free Report) , Barclays PLC and Deutsche Bank AG (DB - Free Report) have been also moving away from physical commodities operations. Higher capital requirements, lower profitability and heightened regulatory scrutiny are the primary reasons for the growing disinterest.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>