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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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Biofuel

PIL vessel in bio bunker fuel trial transports containers with PSA Singapore

Containers, bound for Mitsui Chemicals Asia Pacific’s beneficial cargo owner, were transported via PIL’s vessel “Kota Ratna” and PSA’s coastal terminal and rail nodes in Singapore, Qinzhou and Chongqing.

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PIL transports containers using bio bunker fuel in trial with PSA Singapore

PSA Singapore (PSA) and Pacific International Lines (PIL) on Wednesday (29 May) announced the completion of their first trial of low-carbon green shipments, in a joint effort to build a more sustainable end-to-end supply chain ecosystem.

This pilot trial is part of the Memorandum of Understanding signed in October last year between the two long-standing partners to collaborate on green and sustainability solutions to decarbonise supply chains. 

The pilot consists of warehouse-to-warehouse cargo flow from Singapore to Chongqing via the International Land-Sea Trade Corridor. The containers, bound for Mitsui Chemicals Asia Pacific, Ltd’s beneficial cargo owner, were transported via PIL’s vessel Kota Ratna and PSA’s coastal terminal and rail nodes in Singapore, Qinzhou and Chongqing.

Green levers utilised in this pilot include the use of biofuel on Kota Ratna as well as landside supply chain optimisation by PSA.

The biofuel used for this trial, a blend of 24% used cooking oil with very low sulphur fuel oil, abated about 100 tonnes of carbon, equivalent to planting 4000 trees, and reduced the emissions of greenhouse gases (GHG) by 84.1%.

With first-hand data on carbon emissions obtained from this pilot trial, PIL will be better equipped to assess how it can further lower emissions from its vessel operations, not just for its existing ships but also for its eight new LNG dual-fuel container vessels that will be progressively delivered from end 2024.

The PSA Port Ecosystem Business Division leveraged container barging, a greener mode of transportation as compared to trucking, to haul cargo from PSA Jurong Island Terminal to Pasir Panjang Terminal for onward shipment towards Chongqing. 

In addition, the use of container handling equipment powered by electricity and greener alternative fuels at PSA’s ports reduced emissions in the port area.

The collaborative efforts by both partners across the end-to-end supply chain translated to planting one tree for every laden container moved across this value chain.

Philbert Chua, Managing Director, Container Division, PSA Corporation Ltd, said, “The successful completion of this green pilot project with PIL is an important step forward for the maritime and supply chain sector.”

“Combating climate change is one of our urgent priorities and PSA is committed to work with like-minded partners to put these words into action.”

“This concerted teamwork illustrates a step-by-step measurable approach to further decarbonise supply chains and has unlocked opportunities for accelerated action to achieve our net zero goal.”

Abhishek Chawla, Chief Marine Officer, PIL, said, “PIL is pleased to receive promising results from this low-carbon green shipments pilot trial with PSA.”

“With sustainability at the core of PIL’s operations, we are happy to join forces with PSA as we take concrete action to drive a sustainable future. The valuable insights obtained from this trial will empower PIL to further reduce our vessel emissions in the future, as part of our goal of achieving net zero by 2050.”

“Working hand in hand with like-minded partners, we can augment each other’s sustainability efforts in creating greener shipping and providing a sustainable net zero model to our customers soon.”

 

Photo credit: PSA Singapore
Published: 30 May 2024

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Alternative Fuels

China: Chimbusco, Suzhou Fengbei Biotechnology to conduct bio bunker fuel research

Both parties will comprehensively promote the use of biodiesel in the bunker fuel market and contribute to green and low-carbon shipping.

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China: Chimbusco, Suzhou Fengbei Biotechnology to conduct bio bunker fuel research

China Marine Bunker (Petro China) Co., Ltd. (Chimbusco) and Suzhou Fengbei Biotechnology Co., Ltd. on Thursday (23 May) signed a strategic cooperation agreement to jointly carry out research on the application of marine biofuels and promote pilot projects on the application of biodiesel. 

Both parties will comprehensively promote the use of biodiesel in the bunker fuel market and contribute to green and low-carbon shipping.

Suzhou Fengbei Biotechnology Co., Ltd. has long been committed to the research and development of comprehensive utilisation of natural oil resources, forming an oil resource recycling industry chain of "industrial oils-biofuels (biodiesel)-biobased materials". 

Qin Ling, secretary of the Party Committee and general manager of Chimbusco said with the implementation of increasingly stringent emissions laws and regulations, the company is actively responding to and adapting to domestic development needs. 

“Through strategic cooperation, the company is locking in the future demand for biofuels,” he said. 

Pingyuan, chairman of Suzhou Fengbei Biotechnology Co., Ltd. said that both firms will rely on their respective advantages and resources and seize new opportunities for carbon reduction in shipping. 

Disclaimer: The above article published by Manifold Times was sourced from China’s domestic market through a local correspondent. While considerable efforts have been taken to verify its accuracy through a professional translator and processed from sources believed to be reliable, no warranty is made regarding the accuracy, completeness and reliability of any information.

 

Photo credit: Zhangjiagang Bonded Zone (Jingang sub-district) Party and Government Office
Published: 30 May 2024

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Wind-assisted

MOL to install wind propulsion system on seven newbuildings

MOL has measured the performance of the Wind Challenger on a vessel “Shofu Maru” continuously on actual voyages and confirmed Wind Challenger sail reduced daily fuel consumption by up to 17%.

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MOL to install wind propulsion system on seven newbuildings

Mitsui O.S.K. Lines, Ltd. (MOL) and its group company MOL Drybulk Ltd. on Monday (27 May) announced their intent to install wind propulsion systems on a total of seven newbuilding bulk carriers and multi-purpose vessels, which will be operated by MOL Drybulk. 

MOL has measured the performance of the Wind Challenger on a vessel Shofu Maru continuously on actual voyages and confirmed that the Wind Challenger sail reduced daily fuel consumption by up to 17%.

The fuel saving and GHG reduction effect of the Wind Challenger depends on various conditions such as the type of vessel and the shipping route.

MOL Group will have a total of nine Wind Challenger-equipped vessels, bringing the total number of vessels equipped with wind propulsion systems to 11.

Among the seven vessels to be equipped with wind propulsion systems, six new bulk carriers will each be equipped with one Wind Challenger. Construction contracts have already been signed with Oshima Shipbuilding Co., Ltd. for three of the six vessels, and preparations are under way for construction contracts for the remaining three vessels.

In addition, MOL Drybulk has decided to install two Ventfoils, a foldable and autonomous unit for wind-assisted ship propulsion, manufactured by Dutch firm EconoWind B.V., on one of its new multipurpose vessels slated for delivery 2025 and operation under a time charter.

MOL has established the "MOL Group Environmental Vision 2.2" and has set the target of achieving net zero greenhouse gas (GHG) emissions by 2050. One of the key strategies to achieve this target includes the "introduction of clean energy, further energy-saving technologies," and the group plans to launch 25 vessels equipped with the Wind Challenger by 2030 and 80 vessels by 2035.

 

Photo credit: Mitsui O.S.K. Lines
Published: 30 May 2024

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