EMEA News
Bunker Business Rescues USTC Group Financial Performance
A positive performance in the 2012/13 financial year by Bunker Holding A/S has helped rescue United Shipping & Trading Company (USTC) Group's financial performance for the period, the company said Tuesday in an emailed press release.
The Group's Uni-Tankers A/S and Shipping Holding A/S divisions both reported a loss, DKK 216 million ($37.6 million) and DKK 10 million ($1.7 million) respectively.
However an after tax profit of DKK 276 million ($48.0 million) for Bunker Holding, down from DKK 344 million ($59.9 million) in the period for 2011/2012, helped Selfinvest ApS, the parent company of USTC, to an overall after tax profit of DKK 113 million ($19.6 million), down from DKK 301 million ($52.4 million) in FY 2011/2012.
"I'm obviously not entirely satisfied with the overall profit, but considering the difficult market conditions under which this profit was achieved, especially the fact that the financial year was burdened by an extraordinary write-down of the shipping company's fleet totalling DKK 189 million, this has been an acceptable year all things considered," commented group owner Torben Østergaard-Nielsen.
Bunker Holding saw a 10 percent drop in turnover for the period, which it attributed to both falling oil prices, and a slight drop in sales volume - a natural consequence of a reluctance to grant credit to clients operating in a difficult market, it said.
Østergaard-Nielsen said he was stepping down from the executive management of Bunker Holding to divide his time more equitably among the Group's three business areas and his external board positions, and former Vice CEO of Bunker Holding Keld R. Demant has been appointed CEO effective July 1, 2013.
"Our business model works. Now all we need is a little tailwind from the market to be able to turbocharge our expansion," said Demant.
"In a difficult market, we have managed to open in Brazil and add offices in Russia, Hong Kong and Dubai, so our growth efforts are far from over."
