AP Oil CEO is right man for the job

July 14, 2015 at 9:55 pm Leave a comment

From KGI analyst report on AP Oil,

“Mr. Ho’s first mission when he joined AP Oil was to oversee the unwinding of
the unfavorable iron ore contracts that the company had got into during the
prior year. In the ensuing years, he put an end to the practice of making
opportunistic trades like the ones seen in 2004, and steered the focus of the
company towards soliciting more sustainable recurring businesses. One
example would be the signing of a long‐term partnership with Aegean Oil’s
subsidiary, Aegean Marine Petroleum Network Inc. (listed on the New York
Stock Exchange) for the OEM production of marine lubricants.
In addition to the focus on building a sustainable recurring business model, Mr.
Ho also spent the last few years focusing on building human capital and
corporate culture to instill a sense of belonging and loyalty among staff
members.
On the human capital front, the standard of second‐tier management was
raised through external courses and internal grooming by senior management.

New talents were also acquired to beef up areas that were lacking. Second‐tier
management staff are now better equipped to make decisions on day‐to‐day
issues, rather than leave the problem solving to the “big boss”.
The net effect of these “internal reforms”, while unobservable by an outsider,
transformed AP Oil. The new CEO believes that the company has now
progressed to the point where it is close to being able to run on its own. This,
in turn, frees up more time for him to focus on bringing new growth to the
group. The recent acquisition of Heptalink Chemicals and venturing into China
are signs of the man attempting to grow AP Oil. We also understand that AP Oil
is actively seeking out and assessing potential acquisitions that could add
inorganic growth to the group.
Our impression
During our meetings with Mr. Ho, we formed the impression that he was a
caring employer (even showing concern for the well‐being of the grounds
keeper) that sees value in loyalty. He displayed deep knowledge in the business
but had a hiring philosophy that makes sure that his employees are even better
in their specific area of work than he is. He also came across as an honest
person that is very detail‐oriented but at the same time, does not seem to
micro‐manage. Most importantly, we observed that he adopts a long‐term
approach to running the business.
In addition, we also note that Mr. Ho’s stake in AP Oil were neither given to
him by his parents nor issued by the company.”

P.S. I am vested in AP oil,thus views may be biased.

Entry filed under: Investing. Tags: .

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