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Selfinvest and USTC Group deliver highest consolidated financial result

Bunker Holding came out of the financial year with the Group’s second-best result to date despite challenges including the war in Ukraine and EU sanctions violations.

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Selfinvest, the Østergaard family office, and its operating company United Shipping and Trading Company (USTC) on Tuesday (21 June) announced their highest consolidated financial result to date with an EBT of more than DKK 1.22 billion (USD 172 million), nearly doubling revenue to DKK 120 billion (USD 16.96 billion). 

Bunker Holding came out of the financial year with the Group’s second-best result to date. Bunker Holding increased its EBT by 49% from DKK 445 million to DKK 664 million despite a year marked by instability in the form of rising raw material and energy prices and the war in Ukraine. 

The statement also noted the serious case of Bunker Holding and subsidiary Dan-Bunkering which were convicted of inadvertently violating EU sanctions on Syria in December 2021, which greatly affected the company financially:

  • For the financial year 2021/22, revenue increased by 81 percent to DKK 120 billion compared with the previous financial year 
  • Earnings before tax (EBT) increased from DKK 621 million in 2020/21 to DKK 1.22 billion in 2021/22 
  • Profit was largely driven by solid investment activities in Selfinvest and strong performance by USTC companies Bunker Holding, SDK FREJA, CM Biomass, each delivering a three-digit million EBT 
  • It was a challenging year marked by the aftereffects of the global pandemic, a rise in energy prices, and disrupted value chains 
  • Another milestone was reached as the Group now employs more than 4,000 people globally 

Selfinvest and USTC Group deliver highest consolidated financial result

Selfinvest managed to increase momentum and growth despite a year characterised by volatility. The Group’s profit was largely driven by Selfinvest’s financial investments and impressive results from USTC companies Bunker Holding, SDK FREJA, and CM Biomass.  

“We are very proud of the result that we can present for the 2021/22 fiscal year. The company’s EBT is very impressive and amounts to more than DKK 100 million per month. This past year was challenging in many ways, but our growth strategy has yet again proven very successful. I am particularly pleased by how all our internal and external stakeholders have supported us through a difficult year,” says co-owner Torben Østergaard-Nielsen. 

In recent years, the Group has pursued a comprehensive growth strategy to widen and strengthen its portfolio through diversification. USTC has grown several of its entities, which solidifies and strengthens its position. In addition to expanding its market positions, the Group has grown its employee base to more than 4,000 globally.  

Bunker Holding landed a very satisfactory result. Volume grew by 3 percent while EBT increased 49 percent to DKK 664 million. 

2021/22 was SDK FREJA’s first consolidated financial year with FREJA fully integrated, and the company announced its finest financial performance to date on the backdrop of congestion in global logistics chains. SDK FREJA increased EBT by 294 percent to DKK 244 million. 

While the global market for wood pellets has been heavily undersupplied, CM Biomass maintains momentum with a 78 percent increase in volume and an EBT of more than DKK 170 million. Unit IT experienced growth with the acquisition of solvo it, increasing Unit IT’s revenue by more than 25 percent to DKK 202 million. Selected Car Leasing presents its best result to date with a revenue of DKK 1.4 billion, which is an 87 percent increase in revenue compared to the previous fiscal year. In a hard-pressed tanker market, Uni-Tankers delivered an increase in revenue by more than DKK 200 million. 

Selfinvest has sustained its upward trajectory through its investment across five portfolios, including direct investments in growth companies, real estate and private equity funds, as well as equities and bonds. The return on the invested capital is 19 percent, which is very satisfactory as the Group has managed to expand momentum despite challenging market conditions especially towards the end of the fiscal year. Selfinvest has gradually achieved a robust portfolio through risk diversification, and the result must also be seen in the light of the long-term investments the Group has made in recent years. 

Selfinvest and USTC Group deliver highest consolidated financial result

IN THE WAKE OF A CHALLENGING YEAR 

Due to strong business acumen, the Group’s entities succeeded in navigating through a turbulent year mainly characterised by the aftereffects of the global pandemic, global supply chain disruptions and congestions, and a rise in raw material and energy prices. 

Following the tragic events of the invasion of Ukraine by Russia, USTC entities have also closed several offices and terminated business and operations with and in Russia.  

“We are very experienced in adapting to new market circumstances as they arise, even during challenging times. Our ability to make quick and agile decisions at the right time has been instrumental in securing an impressive financial performance. Our result is very much a testament to our capable and dedicated employees who have pulled together and worked so hard to ensure we have stayed the course and landed this great result,” says Torben Østergaard-Nielsen. 

Bunker Holding 

Bunker Holding came out of the financial year with the Group’s second-best result to date. Bunker Holding increased its EBT by 49 percent from DKK 445 million to DKK 664 million despite a year marked by instability in the form of rising raw material and energy prices and the war in Ukraine. In December 2021, Bunker Holding and subsidiary Dan-Bunkering were convicted of inadvertently violating EU sanctions on Syria. A serious case that has taken a heavy toll in terms of resources and also financially. The entire organisation has learnt from the case, and Bunker Holding has further strengthened its compliance and sanctions systems across the Group. Bunker Holding has expanded its position as the world's leading bunkering company with a volume growth of 3%, which is a strong indication that it continues to enjoy the support of all stakeholders.  

SDK FREJA 

SDK FREJA is a full-service logistics and shipping company with 1,350 employees and operating in eight countries. SDK FREJA's main activities include freight forwarding within Road, Air & Sea, Project, Logistics, as well as Stevedoring, Agency, Customs Clearing, Commercial Chartering, Liner and Cruise services. The financial year 2021/22 was a milestone for SDK FREJA with the company’s first consolidated financial report and the best result to date. EBT grew to 244 million from 62 million compared to the previous fiscal year, corresponding to an increase of 294 percent. At the same time, revenue increased by 128 percent to DKK 6 billion. 

CM Biomass

CM Biomass works with a variety of clients across several markets trading more than 3.5 million tons of industrial and premium grade pellets per year. CM Biomass, which employs more than 145 dedicated professionals in 10 countries, grew from the family-owned Copenhagen Merchants Group; both of which are under management by second generation owner Simon Rodian Christensen. CM Biomass can present a revenue of more than DKK 3 billion and an EBT of DKK 170 million in the period from when USTC became the majority owner.   

Uni-Tankers 

Uni-Tankers is a leading tanker shipping company in the intermediate and small tanker segment. The fleet is one of the youngest in its core market and comprises more than 40 owned and chartered modern and flexible product and chemical tankers. The company has offices in Denmark, Turkey, France, and the US. Despite a tanker market defined by very low rates, Uni-Tankers was able to increase revenue this financial year to DKK 1,461 from DKK 1,250 million last year. EBT was a negative DKK 33 million. Uni-Tankers finished the year very strongly with the last three months delivering positive net income. The outlook for the current fiscal year is very positive. 

Unit IT 

Unit IT includes a wide range of advanced services in infrastructure and private and public cloud solutions, including specialist units in cyber security, business intelligence, and data platform. Unit IT is based in Denmark and has six offices across the country. Unit IT can present an EBT of DKK 21.9 million for the financial year 2021/22. Unit IT are very satisfied with the result, which is characterised by growth through acquisitions and expansion of business areas. At the same time, revenue grew 26 percent to DKK 202 million compared to 2020/21. 

Selected Car Group 

Selected Car Group is a car universe that consists of Selected Car Leasing, which specialises in leasing cars within the premium segment, and Selected Car Investment, which buys and sells investment cars worldwide and in addition offers investment funds where new and existing customers can invest in a unique portfolio of cars. Selected Car Group's third business is Selected Car Collection, which houses one of Europe's finest car collections and facilitates events. 

2021/22 marked a new record year for Selected Car Leasing. Now Denmark’s largest leasing company within the luxury and sports segment of cars, Selected Car Leasing can for the first time present an annual result with a revenue of more than DKK 1 billion. Selected Car Leasing achieved a substantial 87 percent growth in revenue compared to the last fiscal year and an EBT of DKK 20 million, corresponding to an increase of 65 percent. 

The current financial year has come off to an outstanding start for Selfinvest and USTC, and although we foresee a challenging year, our expectations for financial year 2022/23 are positive. 

Related: United Shipping and Trading Company welcomes Nina Østergaard Borris as new CEO
Related: Bunker Holding Global Head of Commercial Operations departs for CM Biomass CFO position

Note: Past articles regarding Bunker Holding and Dan-Bunkering’s court case can be found here

 

Photo credit: USTC
Published: 22 June, 2022

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Technology

SMW 2024: MPA partners with S&P Global and Bunkerchain in digital ship identity

MPA signed a MoU with S&P Global and Bunkerchain to use Singapore as test bed to trial and pilot use of digital ship identity in maritime applications such as digital port clearance and digital bunkering.

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SMW 2024: MPA partners with S&P Global and Bunkerchain in digital ship identity

The Maritime and Port Authority of Singapore (MPA) on Tuesday (16 April) announced it signed a Memorandum of Understanding (MoU) with S&P Global Market Intelligence and Bunkerchain to pilot the use of digital ship identity in the republic. 

The signing took place at the ‘Accelerating Digitalisation and Decarbonisation Conference’ at Singapore Maritime Week (SMW) on the same day.

The parties agreed to use the Port of Singapore as the test bed to trial and pilot the use of digital ship identity in maritime applications such as digital port clearance and digital bunkering.

Digital identity refers to the unique representation of an entity in the digital world, which consists of various attributes and data that distinguishes it from others.

“Electronic transactions may be vulnerable to various risks as such identity fraud and data integrity breaches,” MPA said.

“Digital ship identity plays a crucial role in making electronic transactions more secure, trusted, and efficient in the maritime sector. When deployed in tandem with electronic signatures, these digital technologies will eliminate the need for physical ship stamps and wet ink signatures, and accelerate the transition towards a truly digital, secure, and paperless operations.”

MPA, together with Esri Singapore, the Agency for Science, Technology and Research’s Institute of High Performance Computing and the Technology Centre for Offshore and Marine, Singapore, also developed a digital twin proof-of-concept of a methanol bunkering leak incident. 

“The digital twin runs on an interactive web application that integrates weather and ocean current predictions and AIS data to present visualisation of chemical plume dispersions in the event of a bunkering incident involving alternative fuels,” it said.  

“The capability can help enhance planners’ understanding of the behaviour of the plume clouds under various conditions and guide the development of safety and incident response plans and standards.”

The port authority also announced a collaboration with Amazon Web Services (AWS), an Amazon.com company, to support the maritime industry’s digital transformation and green transition. 

MPA will tap on AWS services including cloud, artificial intelligence (AI), and digital twins to enhance the industry’s efficiency, safety, and sustainability outcomes. 

As part of the collaboration, MPA and AWS will develop the maritime Artificial Intelligence and Machine Learning (AI–ML) Digital Hub, the first-of-its-kind in ASEAN region. 

The AI–ML Digital Hub will leverage AWS cloud to enable the maritime industry to pilot innovative AI and generative AI (GenAI) capabilities to trial on the Green and Digital Shipping Corridors, optimising routes and fuel consumption, carbon emissions accounting, and just-in-time arrivals to help ships operate more efficiently, reduce greenhouse gases emissions, and enhance safety of operations.

A memorandum of understanding was signed between Mr David Foo, Assistant Chief Executive (Operations Technology), MPA and Ms Elsie Tan, Country Manager, Worldwide Public Sector, Singapore, AWS.

Related: SMW2024: 18th Singapore Maritime Week opens with ‘Actions meet Ambition’ theme
Related: SMW 2024: MPA to set up facility for maritime workforce to train in handling new bunker fuels
Related: SMW 2024: Singapore-Rotterdam Green and Digital Shipping Corridor partners to implement first-mover pilot projects

 

Photo credit: Bunkerchain
Published: 16 April 2024

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Bunker Fuel

SMW 2024: Singapore is preparing port for multi-fuel future, says Transport Minister.

‘Our industry has brought in new bunker tankers capable of bunkering higher blends of biofuel and methanol, paving the way for greater emissions reduction for vessels,’ says Chee Hong Tat.

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SMW 2024: Singapore is preparing port for a multi-fuel future, says Transport Minister.

Singapore has moved decisively to ensure energy and fuel resilience as international shipping looks to alternative fuels to meet global decarbonisation targets, said Singapore’s Minister for Transport Mr Chee Hong Tat on Monday (15 April).

In his speech at the Singapore Maritime Week (SMW) 2024 opening ceremony, he said Singapore is preparing its port for a multi-fuel future.

“Our industry has brought in new bunker tankers capable of bunkering higher blends of biofuel and methanol, paving the way for greater emissions reduction for vessels,” he said.

“MPA has also issued Expressions of Interest (EOI) for the alternative fuels ammonia and methanol over this past year.

“For our ammonia EOI, we have shortlisted six consortiums, and are studying their comprehensive proposals for the supply of ammonia for bunkering and power generation in Singapore.”

Chee added reliability and resilience also mean that Singapore upholds the highest standards for safety, efficiency, and quality. 

“Enterprise Singapore, through the Singapore Standards Council, has been working closely with industry partners to introduce national standards to support the digitalisation of bunkering supply chain documentation, as well as on methanol and ammonia bunkering.”

“As a major maritime and bunkering hub, Singapore is committed to continue serving as a trusted node for international shipping.”

Chee said this when elaborating on Singapore’s focus to grow the republic as a hub for reliable and resilient maritime operations, one of three important areas the republic will prioritise on growing its maritime sector. 

The other two areas are to grow Maritime Singapore as a hub for maritime innovation and as a hub for maritime talent development.

“Looking ahead, we expect some turbulence along the way, but we are confident that the global maritime industry will continue to grow,” Chee said.

“And Singapore as a hub port and International Maritime Centre can benefit from this growth and the opportunities it brings, including in emerging areas like digitalisation and decarbonisation.”

However, Chee warned Singapore shouldn’t take its success for granted and to continue improving productivity and competitiveness while staying relevant to changing requirements to be able to meet the needs of local and international stakeholders. 

“But we must not rest on our laurels, or make the mistake of thinking that these positive outcomes will happen on auto-pilot. A rising tide can indeed lift all boats, but the boat and its crew can only benefit if they are well-prepared when the water level rises,” he said.

Related: SMW2024: 18th Singapore Maritime Week opens with ‘Actions meet Ambition’ theme
Related: SMW 2024: MPA to set up facility for maritime workforce to train in handling new bunker fuels
Related: SMW 2024: Singapore-Rotterdam Green and Digital Shipping Corridor partners to implement first-mover pilot projects
RelatedSMW 2023: EOI for ammonia power generation and bunkering closing by 30 April
Related: Singapore gets its first dedicated methanol bunkering tanker “MT MAPLE”
Related: Singapore: Vitol Bunkers takes delivery of specialised biofuel bunker barge “Marine Future”

 

Photo credit: Maritime and Port Authority of Singapore
Published: 16 April 2024

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Biofuel

Banle Energy arranges B24 bunkering services for “YM Utility” in Yantian

Transaction supports the first B24 biofuel supply in Shenzhen and Yang Ming’s inaugural B24 biofuel bunkering supply in China, says firm.

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Banle Energy arranges B24 bunkering services for “YM Utility” in Yantian

Banle Energy International Limited, a subsidiary of CBL International Limited, on Monday (15 April) announced the arrangement of B24 biofuel bunkering services for Yang Ming's vessel YM Utility at a port in Yantian, Shenzhen on 14 April.

“By providing Yang Ming with our B24 biofuel bunkering services, this transaction supports the first B24 biofuel supply in Shenzhen and Yang Ming's inaugural B24 biofuel bunkering supply in China,” the firm in a social media post. 

“As a company actively promoting the use of biofuels, we are making a significant contribution to the International Maritime Organization's (IMO) goal of reducing greenhouse gas emissions (GHG) from international shipping.”

“The B24 biofuel blend, as indicated by a study, is projected to reduce approximately 20% of Greenhouse Gas (GHG) emissions when compared with conventional fuel oil.”

As the firm focuses on expanding its operations in Europe, the firm added it will continue to forge strategic partnerships and explore new opportunities to provide efficient and reliable solutions.

 

Photo credit: Banle Energy International Limited
Published: 16 April 2024

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