Brent down to $38 for January delivery. Sounds better and better for KK. As prices of Brent drop, the final refined product should get cheaper, the financing required for cargoes and stocks reduces...
This means KK gets better Operating Margins & Net Margins... If the expenses are well managed then the PBT (& PAT) increases. I expect 2015's PAT +100% vs 2014. Too early to say about 2016 but indications are that barring any crazy [do not underestimate the crazies] movements, 1Q should be good too.
I was at a KK station jana. It used to have frequent dry-outs but the station is now under New Management. The entrance/exit have been repaired. The station still needs a lot of work but it has great potential as a real estate play too. Multiply that by 100. This is just the low-hanging fruit.
Unlike Segman, Ohana doesn't advertise every OTS win but according to industry sources KK has been bringing in cargoes under OTS though not as many as Segman brought in but it's a start. Low margin but high volume.
The 1H report indicated that the subsidiaries had started pulling their weight & expansion will be limited to the ability of each subsidiary to finance its own expansion.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett