By Tom Kerr, CFA
NASDAQ: UFG
READ THE FULL UFG RESEARCH REPORT
1st Quarter Unaudited Results
Uni-Fuels (NASDAQ: UFG) revenue increased 64% year-over-year to $83.2 million, driven by higher marine fuel trading volumes and expanded commercial activities. Gross profit increased 85% year-over-year to $1.8 million, with gross margins improving to 2.2% from 1.9% in the prior-year period.
Operating loss was ($231,798), and the net loss was ($376,087). The quarter carried higher than normal SG&A expenses due to higher corporate communication expenses.
Marine fuel volumes increased 58% from the prior year period to over 140,000MT, reflecting growth in commercial activities and customer engagements across many key markets.
CEO Koh Kuan Hua stated, “We are encouraged by a promising start to 2026, which reflects the continued execution of our growth strategy. During the quarter, we delivered year-over-year growth in revenue and marine fuel volumes, and improved gross margins. Operational performance remained strong, although quarterly results were impacted by a net loss primarily attributable to corporate communication expenses incurred during the period. We remain focused on building on this momentum through disciplined execution of our growth initiatives, driving consistent performance, and improving returns on capital.”
Due to the stronger-than-expected 1st quarter 2026 revenue performance and improved visibility on commercial activities, the company increased its full-year 2026 revenue guidance to a range of $320- $340 million, which is up from its prior guidance of 310 million to $330 million.
New Expansion Plan
On January 5, 2026, the company 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 reachto meet customer needs in an evolving global bunker and regulatory landscape.
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. Due to higher than expected SG&A expenses, we are maintaining our price target of $5.00 per share. This stock price level has been achieved as recently as October 2025.
The company provided 2026 revenue guidance of between $320 million and $340 million. At the midpoint, that would imply 26% revenue growth. Our 2026 full year revenue estimate is $332.5 million, and our 2026 EPS is $0.01 due to elevated investments in the company’s strategic growth plans. For 2027, our revenue estimate is $392.3 million, and our EPS estimate is $0.05.
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