By Thomas Kerr, CFA
NASDAQ:UFG
READ THE FULL UFG RESEARCH REPORT
New Expansion Plan
On January 5, 2026, Uni-Fuels (NASDAQ:UFG) announced the next phase of its global expansion strategy which focuses on scaling its global operations through organic growth across major maritime markets. As part of this approach, the company is evaluating potential strategic opportunities that may include acquisitions if these opportunities align with its long-term growth strategy.
This announcement builds on Uni-Fuels’ expansion to Dubai, Shanghai, and Limassol in 2025 and provides the strategic framework for additional office openings and operational initiatives designed to support long-term corporate development.
As part of this expansion plan, Uni-Fuels’ strategy is driven by the following priorities:
- Supporting shipowners and operators across global shipping routes, including both major trade corridors and niche ports, with consistent service and execution standards.
- Maintaining strong operational discipline, including counterparty risk management and regulatory compliance, as the company scales its activities.
- Addressing increasing market and regulatory complexity, including the implementation of decarbonization-related measures such as the EU Emissions Trading System (EU ETS), which directly affect voyage economics, fuel selection, and emissions compliance obligations.
- Supporting a growing diversity of marine fuel requirements, including conventional, transitional, and emerging fuels, as customers adapt fuel strategies in response to emissions-related cost considerations and fuel-intensity regulations such as FuelEU Maritime.
- Strengthening scale, operational capability, and broadening geographic reach to meet customer needs in an evolving global bunker and regulatory landscape.
Mr. Koh Kuan Hua, CEO of Uni-Fuels, stated, “This next phase of expansion reflects our focus on scaling Uni-Fuels’ global operations in a disciplined and measured manner. As bunker markets evolve, shaped by increasing regulatory complexity, decarbonization measures, and a growing range of marine fuel requirements, we are strengthening our operational capabilities and geographic reach to support customers across an increasingly complex bunker landscape, while maintaining high standards of operational discipline, risk management, and regulatory compliance. We are investing organically to expand our market coverage and business capabilities, while remaining open to strategic opportunities that align with our long-term objectives.”
Valuation
We believe Uni-Fuels has the potential to deliver strong revenue growth and positive earnings over the next 10 years as it continues to expand into additional markets and executes on its sales and marketing efforts. We believe the company can generate strong double-digit annual revenue growth over the next 10 years. In the near term, we expect revenue growth in the 20%-30% range. The company should be able to maintain industry gross margins in the range of 1.5%-2.0%. As the company expands into higher margin ancillary services, we believe gross margins could exceed 2.0% depending on market conditions and industry dynamics.
Our primary valuation tool utilizes a Discounted Cash Flow process. We are lowering our discount rate due to lower prevailing interest rates expected on a going forward basis. Under the scenario described above, we maintain our DCF based valuation target of $7.00 per share.
Our 2025 full year revenue estimate is $217.3 million, and our 2025 EPS remains the same at $0.02 due to elevated investments in the company’s strategic growth plans. For 2026, our revenue estimate is $271.5 million, and our EPS estimate is $0.05.
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