Vertex Energy announced last Tuesday that it has agreed with Netherlands-based Penthol C.V. to act as Penthol’s exclusive agent in the U.S. to market Group III base oil from ADNOC's (Abu Dhabi National Oil Company’s) new base oil plant in Ruwais, UAE. Penthol C.V., which is ADNOC’s distributor, will export the oils to the U.S.

Penthol will import Group III base oil from the United Arab Emirates to the United States. The first cargo of 75,000 barrels of base oil arrived in Braithwaite, Louisiana, at the end of July.

Vertex has taken on the responsibilities, in cooperation with Penthol LLC (A Penthol subsidiary in the United States), for marketing, sales, and logistical duties in North America. The two companies will be offering Group III base oil in 4 cSt, 6 cSt and 8 cSt viscosities under the Vertex-Penthol name.

Benjamin P. Cowart, Chairman and CEO of Vertex Energy, stated, “We are very excited to be working with Penthol in this initiative. The Base Oil plant operated by ADNOC is designed to produce 10,000 barrels per day of 4/6/8 cSt Group III Base Oils, so we are confident that our supply is reliable and pricing will reflect the global oil market.”

Faruk Erkoc, Chairman of Penthol LLC, said, “Vertex provides great value to Penthol with its extensive background and experience in marketing and selling petroleum products in the United States. Vertex-Penthol have arranged logistic infrastructure, utilizing storage tanks, new rail cars, trucks and barges for the delivery of base oil to customers identified by Vertex throughout the United States. Vertex has the market knowledge and depth of experience that gives us confidence that our investment in the United States will provide early and ongoing returns.”

Separately, Vertex Energy announced its second quarter 2016 financial results last Thursday. Gross profit was $5.3 million, a 4% decline from a year ago. Gross margins improved to 21.5% compared with 11% a year ago, & Per Barrel Margin was up 47% year-over-year, although revenue was $24.4 million, down 50% from a year ago.

In the report Cowart said, esssentially a repeat of the above mentioned, “Our new joint venture with Penthol C.V. of the Netherlands will import Group III base oil from the United Arab Emirates to the United States. The first cargo of 75,000 barrels of base oil has already arrived in New Orleans, Louisiana. This is an important development for us because the United States doesn’t produce Group III base oil, and we have seen a shift in lubricant formulations away from Group I and toward Group II and Group III base stocks, which we anticipate continuing in the future.”

Vertex Energy’s used oil re-refineries in the United States are located in Houston, Texas (35 million gallons); Marrero, La. (60 million gallons); and Columbus, Ohio (18 million gallons). In January of this year, Vertex announced it will launch a new brand identity as well as a line of finished lubricants.

Penthol was founded in 2002 based on an experience of 30 years, and has steadily grown to become a major player with global reach. The company is active in Europe, the Mediterranean, Turkey, Central Asia, the Middle East and the U.S.