Fratelli Cosulich calls 2023 its ‘second-best year ever’ despite 42% drop in net profit

Genoa-based international shipping and logistics company Fratelli Cosulich Group on Wednesday (3 July) said despite a 42% drop in net profit during FY 2023, it was still the “second-best year ever”. 

It recorded a net profit of EUR 30.2 million (USD 32.6 million) in 2023, a drop from EUR 52.2 million (USD 57.8 million) of net profit in FY 2022.

“The Group Net Result was EUR 30.2 million, a 42% decrease from our best-ever year result, but resulting in our second-best year ever yet,” said Stefano Abate, CFO of Fratelli Cosulich Group said in the firm’s preview of 2023 Annual Report, which will be published later this month. 

Despite the challenges of higher interest rates and stable low freight rates, bunker fuel and steel prices, the CFO said the financial performance for 2023 remained “robust”.

He said the group’s turnover, at EUR 1.9 billion, saw a 14% decrease, primarily due to these macroeconomic factors. 

“However, this was not a decline in our activities, but a testament to our ability to navigate through adverse conditions,” he said. 

Abate added its EBITDA, at EUR 49.9 million, showed a 27% decrease, reflecting the impact of investments and macroeconomic factors on the outcome. 

“Yet, it also underscored the effectiveness of our strategy,” he said. 

Abate highlighted that the firm made significant investments in four vessels in 2023, including two Dry Cargo vessels and two new Bunker Tankers Vessels, totaling almost EUR 50 million in assets. 

Additionally, it concluded six merger and acquisition (M&A) operations across all business units and established six new companies to expand its market presence.

Fratelli Cosulich Group Chairman, Augusto Cosulich, said: “These numbers prove the power of our strategy, which translated into investments, especially in a year marked by new geopolitical and macroeconomic challenges, such as the conflict in Eastern Europe, tensions in the Far and Middle East, and the rise of interest rates.”

“We must sustain business ideas. We have always prioritised our customers over a battle with competitors, ensuring that our services meet their evolving needs and create deeper relationships.”

“The acquisition of new assets and M&A actions in 2023, 16 in total, which translates to more than one per month, show that the Fratelli Cosulich Group is built on people.”

The group said its Marine Energy Business Unit made significant progress toward reducing emissions and increasing sustainability. 

“Four of our bunker trading companies have obtained ISCC certification, with three more expected to complete the process by 2024. We also set up our Carbon Desk and registered to trade EU ETS carbon allowances, successfully completing our first EUA transaction in January 2024,” it said. 

It also highlighted that FEMO Bunker, its specialised bunker trading company in the yachting sector, began providing biofuel solutions and it is planning for methanol deliveries in the near future.

“As we continue to manage our fleet of bunker tanker vessels, our internal ship-management team remains proactive in providing top-tier service to major oil companies,” the group said.

“Our team in China has been diligently overseeing the construction of the first two Italian-flagged LNG Bunker Tanker Vessels, which were delivered in Q3 2023 and Q1 2024 respectively.”

​​Related: Fratelli Cosulich posts 74.5% on year increase in net profit, bunkering segment leads revenue generation
Related: Fratelli Cosulich orders its first methanol dual-fuelled bunker tanker to serve Singapore
Related: Genova headquarters of Fratelli Cosulich attains International Sustainability and Carbon Certification

Photo credit: Fratelli Cosulich Group
Published: 4 July, 2024