Executive Summary / Key Takeaways

• CBL International Limited (BANL) is strategically expanding its global marine fuel logistics network, growing from 36 ports at its 2023 IPO to 65 ports by mid-2025, solidifying its position as a one-stop bunkering facilitator across Asia Pacific, Europe, Africa, and Central America.
• The company is an early leader in sustainable marine fuels, with biofuel sales surging 154.7% and volume growing 189.5% year-on-year in the first half of 2025, driven by its ISCC EU and ISCC Plus certifications and the 20% greenhouse gas reduction offered by its B24 biofuel blend.
• Despite a 4.4% revenue decrease in 1H 2025 due to lower marine fuel prices, BANL significantly narrowed its net loss by 38.8% to $0.99 million, improving its gross profit margin to 1.02% and reducing operating expenses by 17% through streamlined operations.
• BANL is actively diversifying its customer base beyond container liners to include bulk carriers and tankers, with non-container liner sales accounting for 36.9% of revenue in 1H 2025, reducing top customer concentration and enhancing revenue stability.
• The company maintains robust financial flexibility with a current ratio of 1.54, negative 4.44 capital days, and $50 million in committed banking facilities, supporting its growth initiatives and strategic investments in sustainable fuels.

A Global Facilitator in a Transforming Maritime Industry

CBL International Limited (NASDAQ: BANL), the listing vehicle of Banle Group, has carved out a significant niche as a marine fuel logistics company since its establishment in 2015. Operating on an asset-light business model, BANL functions as a "bunkering facilitator," adeptly connecting ship operators with local physical distributors and oil traders. The company's core offering is a comprehensive, one-stop solution for vessel refueling, encompassing everything from quotation and price negotiation to physical delivery and contingency management. This approach significantly reduces administrative burdens and time costs for ship operators, while offering competitive pricing through demand aggregation.

BANL's foundational strength lies in its expansive global network, which has grown remarkably from 36 ports at its NASDAQ IPO in March 2023 to over 65 ports across Asia Pacific, Europe, Africa, and Central America by June 30, 2025. This network enables the company to provide flexible and integrated services, a critical advantage in an industry demanding operational reliability. The company serves 9 out of the top 12 global container liners, representing approximately 60% of the global container fleet capacity, underscoring its strong market reputation and effective supply chain.

The maritime industry is undergoing a profound transformation, driven by stringent environmental regulations and geopolitical shifts. Global seaborne trade is projected to grow by 2.5% in 2025, with containerized trade expanding by 2.9% through 2029. However, this growth is tempered by significant disruptions, such as the ongoing instability in the Red Sea, which has rerouted Euro-Asia voyages by 10 to 14 days, increasing fuel consumption and demand at alternative ports. U.S. trade policy changes, including tariffs implemented in April 2025, have also redirected cargo flows, boosting bunkering demand in Intra-Asia and Euro-Asia corridors. These dynamics highlight the critical need for agile and geographically diversified bunkering services, a need BANL is actively addressing through its strategic network expansion.

Technological Edge: Pioneering Sustainable Marine Fuels

BANL's strategic response to the evolving maritime landscape is deeply rooted in its commitment to sustainable fuels, a key technological differentiator. The company is at the forefront of promoting biofuels, particularly its B24 biofuel blend, which offers a tangible 20% reduction in greenhouse gas (GHG) emissions compared to traditional marine fuels. This B24 blend, composed of 24% Used Cooking Oil Methyl Ester (UCOME) and traditional marine fuel, is compatible with existing vessel engines, eliminating the need for costly hardware investments or efficiency sacrifices for ship operators. This "drop-in" capability makes biofuel a crucial transitional option for the next decade, enabling compliance with tightening regulations without immediate, substantial fleet overhauls.

To solidify its leadership in this green transition, BANL obtained ISCC EU and ISCC Plus certifications in early 2023, ensuring its biofuel operations meet stringent international sustainability criteria. The company has rapidly expanded its B24 biofuel operations, commencing in Hong Kong in July 2023, and subsequently extending to Yantian, Shekou, and Nansha in China, Port Klang in Malaysia, and Singapore in March 2025. This proactive expansion has yielded impressive results, with biofuel sales surging 154.7% and volume growing 189.5% year-on-year in the first half of 2025.

Looking ahead, BANL is not resting on its biofuel achievements. The company is actively exploring other sustainable fuel options, including Liquefied Natural Gas (LNG), methanol, ammonia, and hydrogen. Management views methanol as a particularly favorable long-term option, noting a sharp increase in the order book for methanol-powered vessels and a projected annual growth rate of 20% to 25% through 2030 for methanol. This forward-looking technological roadmap, coupled with its current biofuel leadership, positions BANL to capitalize on the global green marine fuel market, which is projected to grow at a staggering CAGR of 50.4% from 2023 to 2030, reaching an estimated USD 201.35 billion by 2030. The company's investments in these new logistic services, while expensed rather than capitalized, are critical for future growth and market relevance.

Financial Performance and Operational Resilience

BANL's financial performance in the first half of 2025 reflects a company strategically adapting to a challenging macroeconomic environment. Revenue decreased by 4.4% to $265.2 million compared to the first half of 2024, primarily due to a decline in marine fuel prices. However, this was partially offset by a robust 9.8% increase in sales volume, driven by network expansion, new customer acquisitions, and a strategic pivot towards non-container liner and biofuel segments.

Despite the revenue dip, BANL demonstrated significant progress in profitability and efficiency. The company narrowed its net loss by 38.8% to $0.99 million in 1H 2025, a substantial improvement from a $1.62 million loss in 1H 2024. This improvement was largely attributed to a 17% reduction in operating expenses, from $4.12 million to $3.42 million, achieved through disciplined cost management and operational streamlining initiatives. The gross profit margin also saw a slight but meaningful increase of 4 basis points to 1.02% in 1H 2025, reflecting a strategic approach to maintaining profitability while expanding market share.

For the full fiscal year 2024, BANL reported consolidated revenue of $592.52 million, a 35.9% increase from 2023, fueled by a 38.1% rise in sales volume. However, the company transitioned to a net loss of $3.87 million in 2024, from a net income of $1.13 million in 2023. This was primarily due to a 25.5% decrease in gross profit to $5.37 million, as BANL adopted a volume-driven strategy involving more competitive pricing to gain market share in a highly competitive environment. Operating expenses also surged by 56.8% to $8.70 million in 2024, reflecting significant investments in business expansion, biofuel operations, and enhanced ESG initiatives. Management views these expenses as necessary "planting" for future "harvesting" of results.

BANL maintains a strong liquidity profile, crucial for its asset-light model. As of June 30, 2025, the company reported a current ratio of 1.54 and capital days at a negative 4.44, indicating excellent cash cycle management. Cash and cash equivalents stood at $5.43 million, supported by $50 million in committed banking facilities, providing ample financial flexibility for future expansion and strategic investments. The company's focus on maintaining low debt levels further enhances its flexibility.

Competitive Landscape and Strategic Positioning

The marine fuel logistics industry is highly competitive, with established global players like World Fuel Services Corporation (INT), BP plc (BP), and Shell plc (SHEL). BANL, while a significant regional player, particularly in Hong Kong and China where it holds a top two market share position, operates on a smaller scale compared to these multinational giants.

BANL's competitive advantages stem from its extensive global ports network, offering one-stop refueling solutions, and strong relationships with both suppliers and customers. Its asset-light model and just-in-time inventory management minimize fixed costs and storage risks, enhancing operational agility. The company's regional expertise, particularly in Asia Pacific, allows for potentially faster response times and customized services, differentiating it from the more standardized, large-scale approaches of global competitors.

However, BANL's smaller scale and regional focus present vulnerabilities. Larger competitors like World Fuel Services, BP, and Shell benefit from broader global reach, diversified operations, and often superior financial resources, which can translate into greater cost efficiencies and resilience against market volatility. For instance, while BANL's gross profit margin improved to 1.02% in 1H 2025, World Fuel Services reported a gross profit margin of 2% in 2024, indicating a potential scale advantage. Similarly, the operating profit margin for BANL was -0.55% (TTM), contrasting with World Fuel Services' 0.0050% in 2024, highlighting the impact of BANL's strategic investments and competitive pricing on its short-term profitability.

BANL's strategy to diversify its customer base is a direct response to competitive pressures and market shifts. Non-container liner sales (bulk carriers and tankers) increased to 36.9% of revenue in 1H 2025, up from 32% in 2023 and 45% in 2024, reducing reliance on its top 5 customers. This diversification, coupled with its expanding network, allows BANL to capture volume growth even in a challenging market. The company's early investment and leadership in biofuels also provide a significant competitive edge, aligning with tightening environmental regulations and growing customer demand for sustainable options, an area where larger players are also investing but where BANL has demonstrated early mover advantage.

Outlook and Risks

BANL's outlook for fiscal year 2025 and beyond is characterized by continued strategic expansion and a strong focus on sustainable fuels. The company plans to strengthen its service network in Asia Pacific and Europe, expand into emerging markets, and grow sales volume through customer and segment diversification. A central pillar of this strategy is the aggressive exploration and adoption of sustainable fuels, with management anticipating accelerated demand for biofuels and other decarbonization efforts driven by tightening IMO and EU regulations.

The IMO's 2023 GHG Strategy sets ambitious targets: a 20% reduction in emissions by 2030, 70% by 2040, and net-zero by around 2050, compared to 2008 levels. The FuelEU Maritime initiative, effective January 2025, further mandates a 2% GHG intensity reduction, escalating to 80% by 2050. These regulatory tailwinds are expected to fuel the green marine fuel market's substantial growth. BANL's 2025 ESG plan, focusing on sustainability strategy, governance, and enhanced disclosure, underscores its commitment to these long-term trends.

Despite this promising outlook, BANL faces several risks. Global economic uncertainty, geopolitical tensions (such as the Red Sea crisis and the Ukraine conflict), and oil price volatility remain significant challenges. While BANL's asset-light model and cost-plus pricing mechanism help mitigate direct impacts from price fluctuations, prolonged global trade standstills or economic recessions would affect the entire industry. Intense competition in the bunkering sector, particularly during periods of price sensitivity, can pressure gross profit margins, as observed in 2024. Furthermore, dependence on key customers, while being diversified, remains a factor to monitor. The successful implementation of its ambitious expansion and sustainable fuel initiatives will require careful capital allocation and operational execution.

Conclusion

CBL International Limited is positioning itself as a resilient and forward-thinking player in the global marine fuel logistics sector. Its core investment thesis centers on strategic network expansion, aggressive customer diversification, and pioneering leadership in sustainable marine fuels. The company's asset-light model and disciplined cost management, evidenced by a narrowed net loss and improved gross profit margin in the first half of 2025, demonstrate its ability to adapt to volatile market conditions.

BANL's early and significant investment in biofuel technology, offering a 20% reduction in GHG emissions without requiring extensive vessel modifications, provides a crucial competitive advantage in a rapidly decarbonizing industry. While operating on a smaller scale than some global competitors, its regional expertise and strategic focus on emerging green fuel markets offer a compelling growth trajectory. The company's robust financial flexibility, supported by ample banking facilities and capital market activities, provides the necessary resources to execute its long-term vision of becoming a full-fledged, well-rounded bunkering service facilitator for the future, with a strong emphasis on sustainable solutions. Investors should monitor BANL's continued execution of its sustainable fuel roadmap and its ability to leverage its expanding network to drive sustained profitability amidst ongoing geopolitical and economic complexities.