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TAKING A MOMENT: Mr Chandran's family and friends gathering outside Mount Vernon yesterday shortly after his body was moved there. Memorial services today will be attended by the Chemoil founder's family and business associates. -- ST PHOTO: DESMOND WEE
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CHEMOIL Energy has reassured customers and investors that its operations around the world will continue as per normal after the shock death of founder and chief executive (CEO) Robert Chandran.
The marine fuels supplier issued a statement yesterday saying that operations at its newly completed Helios Terminal on Jurong Island and overseas projects would continue as planned.
Chemoil's Singapore-listed shares slipped as low as 46.5 US cents shortly after markets opened yesterday before rallying to close half a US cent higher at 48.5 US cents. The price rose as high as 50 US cents during the trading day.
Analysts were optimistic that the firm would not be thrown off course by the loss of Mr Chandran, who was also executive chairman.
He was killed when the military helicopter he was flying in crashed on Monday afternoon in Indonesia's Riau province. He had gone there to explore business opportunities with other Chemoil executives. He was 57.
Chemoil said on Tuesday that it had postponed the opening of its 448,000 cu m Helios storage terminal, which had been scheduled for today, due to Mr Chandran's death.
In a statement yesterday, it said the terminal will commence operations as planned this month.
Helios managing director Sanjay Anand said: 'The terminal is ready for operation and will usher in a new age for independent marine fuel suppliers in Singapore.'
Chemoil also said it will proceed soon with plans to start delivering fuel from its terminal in the United Arab Emirates port of Fujairah and will proceed with the planned expansion for that terminal.
Lead independent director Clyde Bandy said: 'Under the guidance of Bob Chandran, Chemoil developed a robust business strategy based on controlling the marine fuel supply chain and offering our customers unrivalled quality of service and infrastructure.
'It would have been Bob's wish to see us take on and develop this strategy further.'
And while the Chemoil board is expected to meet by the end of this week when all members have arrived in Singapore, the search for a successor to Mr Chandran is not expected to be easy.
JPMorgan Securities Singapore analyst Winnifred Heap said on Tuesday that Mr Bandy was well-equipped to provide advice and guidance to the current management team as the search for a new CEO took place.
But Chemoil vice-president for sales and marketing Adrian Tolson said yesterday that it would be hard to find someone with Mr Chandran's qualities.
'He was a significant entrepreneur and a significant person with a lot of passion.
'It will be hard to replace someone like him,' he said in a telephone interview from San Francisco, where he is based.
'But one of Bob's legacies is that he has fostered a lot of entrepreneurial skills and spirit among his key management team and I am sure they will continue his work in the company.'
CIMB-GK analyst Robert Adair was more cautious yesterday. Having downgraded his call on the stock to 'neutral' from 'buy' on Tuesday, he said: 'Even if Mr Chandran were still with us, it's a tough business and you have to be in control of things.
'You need to see the new management come into place and show that they have a hand on things before you commit money towards the stock.
'It's a low-margin business and control is very important. But they have certainly made noises that they're doing something about it, so that's good to hear.'
Mr Chandran's body was at Singapore Casket in Lavender Street yesterday until it was moved to Mount Vernon in the afternoon.
Services to be attended by Mr Chandran's family and business associates will be held at Mount Vernon today.
nicholas@sph.com.sg
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