February 2004

Founding of Mabanaft Inc., Connecticut

Mabanaft had always had a strong position in Europe. For several months now, the trading company has been busy developing the market on the East Coast of the United States. To continue on its international growth path, Mabanaft GmbH & Co. KG, Hamburg, founds Mabanaft Inc. in America, which focuses mainly on trading in heating oil.

Since June 1, Mabanaft Inc. has supplied its customers in Connecticut with gasoil and diesel from a tank terminal in New Haven. By wholesaling middle distillates in the U.S., Mabanaft expands its international footprint with a view to strengthening its trade position. An optimum supply from local refineries is as important in this as the exploitation of possible options for imports from Europe is.

The company is able to draw on the international experience of Mabanaft Holding Group – which is already active in Germany, Russia, Switzerland, Austria, Moldova, Hungary, the Netherlands and England – and leverage synergies.

Starting May 18, 2004, Mabanaft Inc. is also active in energy futures trading on the NYMEX in New York, thereby creating a further prerequisite for successful trading. Trading in futures contracts serves as a hedge for its own trade and inventory positions, as well as for optimizing the pricing of the sale contracts per customer.

The Trading Business in the US
The trading business is characterized by “a highly sophisticated approach” to pricing – a strong stock market orientation. Oil prices are an integral part of the daily news, and the focus of public attention. Trade is extremely seasonal, as demand for heating oil is essentially limited to the winter months. Very small tanks mean fortnightly or monthly deliveries, and customers need to negotiate a delivery service contract beforehand if they want to avoid running out of heating oil.