Norwegian diabetes pharmaceutical company aims to profit from the global sulphur cap on global shipping

Norwegian diabetes pharmaceutical company aims to profit from the global sulphur cap
Sam Chambers September 14th, 2018 https://splash247.com/norwegian-diabetes-pharmaceutical-company-aims-to-...

The global sulphur cap might be a bitter pill for many shipowners to swallow, but a new subsidiary of a Norwegian pharmaceutical company aims to profit from the impending legislation. Energy trader Vistin Trading, founded by Vistin Pharma this March, will establish two new funds by the end of the year dedicated to profiting from the likely fluctuating changes in bunker prices in the months ahead leading up to and through the IMO-mandated global sulpur cap, which starts on January 1, 2020.

“We believe the market is mispricing both residual fuel oil and gasoil,” a Vistin oil analyst, Torbjoern Kjus, told a conference in Oslo yesterday, according to Reuters.

The spread is currently about $300 per tonne.

“30,000 scrubbers have to be installed the next 16 months, if not, there should be a problem for the refineries. Of course it will not happen, we might reach 2,000 scrubbers,” Kjus said.

“Part of Vistin Pharma’s strategy is to invest in asymmetrical investment opportunities caused by fundamental changes in the oil space,” Vistin Pharma said on founding Vistin Trading earlier this year.

Kjus, formerly with DNB Markets, said he expects the price of low sulphur fuel oil to rise because of higher demand to comply with new rules and constraints at refineries.

Vistin Pharma is best known for producing metformin hydrochloride, used to treat high blood sugar levels caused by type 2 diabetes.