Tue 23 Apr 2013, 12:45 GMT

Wrist Group posts robust 2012 results


Sales surge almost 20 percent and earnings before tax increase by 16 percent.



Wrist Group, one of the shipping industry's largest global providers of products and services for vessels, today announced robust financial results for 2012.

Sales for 2012 increased by 19.6% to $14.6 billion from $12.2 billion in 2011, and earnings before tax increased by 16% to $76 million, compared to $66 million the previous year. Wrist Group comprises OW Bunker, one of the world's leading marine fuel suppliers, and Wrist Ship Supply, the world's largest ship supply company.

“These are satisfactory results for the Group, and provide a strong platform for further growth and development,” said Morten Skou, Chief Financial Officer, Wrist Group.

“As the shipping industry continues to face challenging economic conditions, our focus has been on working with our customers to provide them with as much operational and cost efficiencies as possible when procuring bunker fuel and ship supplies. We have expanded our global and in-country operations in key growth regions for our customers to provide support and products when and where they need them. And we have also invested in our physical infrastructure, such as our fleet and storage facilities to ensure the quality of both our products and services throughout the entire supply chain, optimising both our offering and the financial benefits we can deliver to customers,” continued Skou.

In 2012, OW Bunker launched new reselling and physical operations in North America, based in Houston and Connecticut respectively. This provides a strategic link with its divisions in Chile, Panama, Brazil and Uruguay, where the company has also expanded and developed its operations.

OW Bunker also expanded its coverage in Scandinavia through a strategic partnership with Bergen Bunkers A/S, and continues to focus on developing its presence in Asia. In 2012, this included the launch of a new office in Beijing, which complements the company's operation in Shanghai.

Within the physical division, OW Bunker has invested in the development of a global standard to ensure the quality of its physical products, as well as investing in innovations and technology such as Coriolis flow meters to guarantee product quantities.

In 2012, Wrist Ship Supply grew its global market share to above 7%. It successfully concluded the integration of the company's recent acquisitions into its global network, in particular offshore catering specialist Strachans Ltd and the OneSource Group of companies in the USA and Canada. This has created economies of scale and a foundation for further growth.

As well as developing its regional networks to provide customers with a dedicated on the ground outsourced service in key areas, it has also invested in its physical and technology infrastructure. This includes expanding warehouse facilities, as well as developing new systems to streamline the procurement process for ship supplies to secure optimum value and cost efficiencies for customers.

Jim Pedersen, Chief Executive Officer, Wrist Group, commented: "We are satisfied with our performance in what remains challenging times for the shipping industry and our customers. Our conservative approach to controlled expansion has provided us with sustained growth over the past few years as well as financial stability. This has enabled us to support our customers in tough market conditions, investing in our products, services and infrastructure to improve their cost and operational efficiencies, as well as providing the best terms and prices. While we remain cautious on the future outlook for the industry, we are confident that our business model and the foundations that we have put in place will create the opportunity for further growth and development."


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