EMEA News
OW Bunker Collapse Boosts Bunker Holding Profits, Helps Group to Record Result
United Shipping & Trading Company (USTC)'s bunker arm Bunker Holding A/S (Bunker Holding) has seen its annual profits rise 57 percent year-on-year, with USTC parent Selfinvest ApS posting its "best results ever" of DKK 628 million ($92.8 million) before tax in 2014/2015, the company announced in an emailed statement.
According to the company, OW Bunker's bankruptcy provided new market opportunities and the chance to scoop up skilled talent, though the company also saw a one-time gain from a years-long legal battle.
"It may be said that what we did was thoroughly prepared," said SelfInvest CEO Torben Østergaard-Nielsen.
"Our different acquisitions have become a perfect match for our existing businesses which is also why we soon saw favourable financial results being generated by these acquisitions."
Østergaard-Nielsen added that a long-term corporate strategy had also prompted several acquisitions and alliances that "had been on our wish list for a long time."
Though revenues fell to DKK 52 billion ($7.7 billion) from DKK 62 billion ($9.2 billion), net profit rose to DKK 471 million ($70.1 million) from DKK 290 million ($43.2 million).
Bunker Holding remains the highest-earning company in Selfinvest's roster, having seen pre-tax profits rise to DKK 551 million ($81.3 million) from DKK 351 million ($51.8 million).
"The profit is noteworthy because the higher earnings were generated by sector consolidation involving both organic growth and the acquisition/takeover of other bunkering companies," the company said.
Among SelfInvests other subsidiaries, Uni-tankers A/S reportedly suffered in the last year from a weak cargo market with a net loss of DKK 27 million ($4 million), while Shipping Holding A/S is just beginning to rebound from years of losses with a net profit of DKK 7 million ($1 million).
However, the future appears brighter at Bunker Holding, where the company is posed to play a significant role in the sector's move towards consolidation, according to Bunker holding CEO Keld Demant.
"We are now second-ranked in the world market but we are rapidly gaining on number one," he said.
"We have been continually investing in developing our employees, so we are well-prepared to continue our profitable growth."
And in a hint at possible future acquisitions, Bunker Holding says it is now in a position to "be able to play a significant role in the sector consolidation process which was further spurred by OW Bunker’s bankruptcy."
Last week, Demant also predicted that as many as half of global bunker suppliers may not survive as an erosion of trust in the industry has heavily impacted smaller players.
