Svitzer posts positive results for 2015

In November 2015, Svitzer gave an indication of a potentially satisfactory year with its reporting of performance figures for the first nine months of the year. The final figures for 2015 are reported as being secured on the back of cost efficiencies, asset optimisation and an increase in volumes.

This column has reported regularly throughout the last year on development in Svitzer’s world concerning contracts for new operations and acquisitions along with the commencement of a number of local joint ventures in new markets and the company cites these developments as part of the reason behind the figures.

The company delivered an underlying profit of USD 116m (82) with an EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) of USD 190m (170) and a return on capital investment, excluding special items at 10.6% (5.8%). Revenue was down at USD 668m (812) due to the exclusion of revenue from Svitzer Salvage after the merger with Crowley forming what is now Ardent, as well as a weaker Australian dollar and Euro compared to the US dollar.

The developments mentioned above have prompted a flurry of orders for new tugs which have also been covered in this column. Stories of note include, Svitzer entering the sizable Brazilian towage market through acquisition of the towage operator Transmar and the signing of long-term contracts with Inpex LNG as well as Darwin LNG in Australia cementing its strong position in the LNG market.

Svitzer also secured a 30 year contract in Moin, Costa Rica to provide ICE-class tugs to the world’s northernmost mine in arctic Canada and a contract with Saudi Aramco in Saudi Arabia. The joint ventures included agreements with Qingdao Port Group and Binhai Port in China as well as SVT Marine Services in Malaysia.

Svitzer serves container lines, tramp operators, port owners and offshore operators and it reports that these sectors are facing “significant macro-economic challenges” which also risk impacting their activity levels in forthcoming years. They aim to work with clients to improve vessel turnaround times and service levels while also entering new market to serve a global client base. Svitzer, which has around 4,000 employees and a fleet of over 430 vessels, aims to continue its cost and productivity programme, not least in its harbour towage operations to secure continued satisfactory results.

Robert Uggla, CEO Svitzer says: “2015 was a year where we focused on securing more market share in existing operations through improved service levels, entering new markets and turning around underperforming operations. We have performed well in these areas and have delivered one of our best results and operating margins to date.”

By Peter Barker