Svitzer’s satisfactory results in challenging markets

Svitzer, part of the Maersk Group with a workforce of 4,000 and a fleet of over 430 vessels has maintained market shares in key competitive ports in Australia and Europe as well as deployment of most of the spot fleet in Middle East and Africa.

Headline figures (comparative figures for Q3 2015 in parenthesis) include an underlying result of USD 22m (30) and return on invested capital of 6.9% (10.8). The results were negatively impacted by investments and start-up costs for new operations in Brazil and Argentina as well as a weak salvage market; revenue was USD 163m (161).

Commenting on the results, Henriette Thygesen CEO at Svitzer said: ‘Our markets continue to be challenging with overcapacity, increased competition and a general slow-down in the shipping industry. On that basis our results are satisfactory and we have maintained market shares in key competitive ports in Australia and Europe, where competition is fierce. In the period, we have also successfully deployed most of our spot fleet in Middle East and Africa’.

In a separate announcement, Svitzer has reported an upgrading and doubling of its fleet of Brazilian-flagged tugs in 2017 and the unveiling of a new service in Paranagua. Two new tugs started operations at the port recently where it already operates, with operations also at Sao Francisco do Sul and Itapoa.

In addition, Svitzer is building four new tugs at Inace Shipyard in Fortaleza, due to enter service later this year; deliveries MJ hopes to return to. This will bring the number of Brazilian-flagged ships in operation to 10 by the end of 2017 and is on top of the recent commencement of operations in Argentina involving nine tugs.

By Peter Barker