Slowdown in Newbuild Orders Hits Bunker Saving Hull Coatings Player

by Ship & Bunker News Team
Friday February 10, 2017

Jotun Group (Jotun) says its growth in 2016 was hampered by a downturn in the shipping industry newbuild orderbook.

"Sharp declines in newbuilding orders affected our growth last year and will likely impact Jotun's business going forward," Morten Fon, Jotun President and CEO.

"However, we believe the offshore market is set for a modest recovery some time in 2017."

The company reports that, while its overall sales in marine coatings were down in 2016 compared to the previous year, demand for Jotun's Hull Performance Solution (HPS) grew.

"Even in difficult markets, owners recognise the benefits of HPS," said Fon, noting that "to date, Jotun's HPS has been delivered to more than 400 vessels, worldwide."

As Ship & Bunker reported in May, Geir Axel Oftedahl, Business Development Director of Jotun's HPS, said that the growing adoption of hull and propeller performance monitoring is encouraging," but that "more needs to be done."

Overall, Jotun says it delivered its second best result ever in 2016, reporting an operating revenue of NOK 15.8 billion ($1.88 billion) and an operating profit of NOK 1.8 billion ($210 million), which the company says was largely attributed to growth in its decorative paints and powder coatings segments.

Ship & Bunker News Team
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