New top Manager for Blue Water Shipping
Blue Water Shipping’s consolidated annual accounts for 2016 show a profit of DKK 1,4 m EUR before tax
A profit of EUR 1,4 m before tax in 2016 is not quite satisfactory for the Danish transport group with a staff of more than 1400 at 60 offices worldwide. However, the top management takes a positive view of the present situation and the result for 2016.
“In 2016, we introduced a series of changes and adaptations in consequence of our loss of EUR 1,9 m in 2015. We have seen an effect of the adaptations, but in some areas, it will take a little longer before the results really show. The result for 2016 is not quite satisfactory. As it is influenced by our still heavy investments in enhancing our business, a modest profit is, however, acceptable. The most important thing is that we are making a profit and that we have turned things around”, says Kurt Skov, CEO and Founder of Blue Water Shipping.
The accounts of Blue Water Holding, covering the activities of the entire group, show an increase in turnover of 4% - from EUR 671 m to EUR 700 m. And the bottom line improvement was just over EUR 3,2 m – from a loss of EUR 1,9 m to the profit of EUR 1,4 m before tax. The annual accounts are negatively influenced by total costs of EUR 6 m resulting from changes in the Nordic activities, the implementation of our super terminal in Danmark as well as decline in the Oil and Projects activities.
We operate in a competitive market with a low margin on many activities. We are therefore satisfied that our business is growing and that we have succeeded in creating positive changes in 2016 where we have started implementing new strategies and organisations for our business segments”, says Kurt Skov.
In 2016, we have made investments for EUR 6 m in the new terminal in Denmark - inaugurated in August last year - and which total investment amounts to more than EUR 16 m. On the IT arena, heavy investments have been made: EUR 4 m to the implementation of a new global IT strategy with fewer but global and more integrated IT platforms. Again in 2017, investments in these two fields will affect the result with an expected EUR 7 m.
We expect a better total result for 2017 than the 2016 result, as we will see a still increasing effect of the big investments, and because of an expected increase in earnings – especially within Oil/Gas, Wind and Projects, where the recent months have showed increasing activities. Also, the Danish part of the Blue Water Group’s biggest activity – transport of consumer goods, industrial cargo and food products by sea, road and air – generates growth and strong earnings.
“Our core business is healthy and grows steadily. Our project-oriented business shows fluctuating activities. This we experienced as a negative trend in 2015 and partly in 2016. Right now, however, things look very favourable as we have recently won a series of major and minor Oil/Gas and Wind projects. This contributes to increased earnings and enables us to expand and develop these business segments again”, says Kurt Skov.
Furthermore, Blue Water has during the past year announced three gigantic contracts totalling over US$ 750 m for the oil consortium TCO, who are presently extending the Tengiz Oil Field in Kazakhstan. Blue Water is leading three consortia as overall project responsible for transporting around 300 modules of up to 1800 tons to the Caspian Sea for TCO. For this big project, the consortia are responsible for building 20 specially designed vessels as well as upgrading 11 barges and 29 tugs. Construction of the first vessels is completed, but transportation of the modules will not commence until 2018.
“At present, the TCO activities are increasing strongly, but we will not see any major positive effect in terms of earnings until 2018 and onwards. Naturally, we are extremely proud of being part of this gigantic project, but we also keep a strong focus on maintaining good and strong development of and earnings within our other business segments”, says Kurt Skov.
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