Ignoring the hefty profits of the IMO 2020 transition, Selfinvest's performance has been improving rapidly in recent years. Image Credit: Ship & Bunker / Data Credit: Selfinvest
Selfinvest, the owner of Bunker Holding parent company USTC, has reported a 37.9% drop in its pre-tax profit from the previous year's record results.
The firm reported pre-tax earnings of 621 million Danish krone ($99.6 million) in the year to April 30 in an emailed statement on Monday, down from DKK 1 billion a year earlier.
The fall in profits is dramatic, but the decline is from a record result in 2019/20 that included the IMO 2020 transition period in which bunker suppliers and traders were able to command hefty premiums for the then new VLSFO blends. The 2020/21 pre-tax earnings number released on Monday was the third-highest in the company's history.
Selfinvest saw revenue of DKK 66 billion in the year to April 30, down from DKK 76.8 billion in the same period a year earlier.
The company cited the knock-on consequences of the COVID-19 pandemic as being the main drivers of this year's drop in profits, but sounded an optimistic note on the 2021/22 financial year.
"The Group's activity level, revenues and earnings are generally affected by a number of external factors, such as development in the global freight market, oil price development and the general development within green energy," the company said in Monday's statement.
"This year, the COVID-19 pandemic has contributed significant challenges for the Group and its markets, which is not expected to continue at the same level in 2021/22, and thus the expectations for the financial year 2021/22 are that earnings will be slightly above 2020/21 results."