Thu 5 Jul 2012, 10:08 GMT

Bunker Holding records 29% profit rise



United Shipping & Trading Company (USTC) has achieved both record turnover and record profits in 2011/12 with Bunker Holding - which has marine fuel specialist A/S Dan-Bunkering Ltd. as its subsidiary - almost doubling turnover and profit over a period of two years.

In 2011/12, Torben Østergaard-Nielsen’s Selfinvest ApS, the parent company of USTC, recorded a turnover of DKK 68.4 billion (USD 11.56 billion) and profit before tax of DKK 370 million (USD 62.54 million). The group, which is now one of the largest in Denmark by turnover, made significant progress in terms of both turnover and profit.

All three business areas – bunkering (buying, selling and provision of fuel for ships), ship-owning, and shipping and logistics – recorded increased turnover. However, bunkering activities, which make up 99 percent of total turnover, accounted for the greatest growth in turnover and revenue.

"I’m extremely pleased with this year’s financial results, achieved in a market that remains under pressure. The group has consolidated its already very healthy financial preparedness even further to be able to support ongoing growth and further development – including in our ship-owning and shipping activities," stated Torben Østergaard-Nielsen, owner of the USTC Group.

Bunker Holding turnover and profit almost doubled in two years

Turnover in the bunkering activities of Bunker Holding increased by 33 percent exclusively from organic growth, while profit was up 29 percent. The rise in turnover is said to have been due to increased volume and a strong rise in oil prices.

"Over the last two financial years, Bunker Holding has seen its turnover, profit and equity almost double. This has come about in a market that has still not recovered to the level of activity and revenue we saw four years ago, before the crisis started to bite. The improvement in our revenue reflects optimised collaboration with customers and suppliers despite the difficult conditions facing the sector, hedged by particularly proactive credit control," said Keld R. Demant, Vice CEO of Bunker Holding.

During the year, Bunker Holding, the second-largest bunkering operation in the world, opened new offices in existing and new markets, and it expects to open more new offices this year.

Other activities

The ship-owning and shipping operations have also seen progress in turnover. However, profits remain affected by the continuing difficulties of the market in which they operate. Ship owner Uni-Tankers is defying the crisis with a striking strategic expansion of its fleet: it is purchasing nine tankers, bringing the number of vessels it now operates to 35.

Offices have also been added in three more countries, and the number of employees has quadrupled. The goal for ship-owning activities is to become a leading player in the small and intermediate oil and chemicals market within five years.

At Shipping Holding, the organisation has now been slimmed down, and preparations have been made for renewed growth within core business areas that the business is known and respected for by its customers.

As a result, Torben Østergaard-Nielsen expects the next few years to herald growth in all parts of the group.

"Growth has always been our objective for the Group. And organic growth has always been our business model. However, we are also willing to enter into alliances and possibly make some acquisitions," Torben Østergaard-Nielsen commented.


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