Hempel Says 2013 Brought Record Profits

Marinelink.com
Wednesday, April 02, 2014

The Hempel Group announced it delivered a record net profit in 2013, placing it in a strong position to achieve its targets through a combination of organic and external growth.

The Hempel Group’s continued focus on efficiency and profitability ensured it delivered a net profit of €65 million in 2013, despite volume growth of only two percent. The Group also secured an EBITDA result of €165 million, the highest in its history.

Pierre-Yves Jullien, Group President and CEO of Hempel A/S, comments: “Our strong financial performance in 2013 has given us the room needed to acquire new companies while also financing organic growth. This will enable us to grow faster than the market over the coming years, and I am confident it will allow us to reach our goal of becoming one of the world’s top-10 coatings manufacturers.”

Hempel’s 2013 results

- Revenues remained flat at €1,239 million in 2013
- EBITDA of €165 million, highest in Group history
- Operating profit rose from €83 million to €125 million
- Net profit increased by €30 million to €65 million

The Hempel Group’s revenue reached the same level as 2012 despite a two percent increase in volume. This was partly due to the declining U.S. dollar against the euro, as well as a sharp decline in the Marine Newbuilding segment. Hempel’s other key segments, however, performed well. The Protective and Marine Maintenance segments were the main growth drivers, while the Decorative segment was on par with 2012.

The Hempel Group’s strong net profit in 2013 was largely due to the efficiency and productivity measures implemented over the last few years. These measures, combined with stable raw material prices and a controlled change in the company’s product mix, led to a significantly improved gross margin, which increased by four percentage points to 41 percent in 2013.

“The profitability we delivered in 2013 came without compromising the key investments we are making to ensure a sustainable future for the Group as part of our One Hempel – One Ambition strategy,” says Pierre-Yves Jullien. “We still have more work to do, but we have shown that we have the financial, business and organisational capabilities needed to grow faster than the market.”

Investing for the future

Hempel’s investments in recent years include new factories in Saudi Arabia, India and Russia, as well as factory expansion projects in the U.K., Malaysia and Kuwait. By 2015, this work will give Hempel the capacity to produce approximately 230 million liters more per year compared to 2010, and will enable the company to ensure a steady and timely supply of high-quality coatings anywhere on the globe.

The company also released a number of new products in 2013, including launching the Versiline series – a range of high-performance coatings for the challenging environments encountered in many process
industries – on the global market for the first time. In the Marine segment, Hempel launched HEMPAGUARD, a new fouling defence product that reduces vessel fuel bills and associated CO₂ emissions by six percent compared to traditional antifouling products. Despite being launched late in the year, HEMPAGUARD saw more than 60 full ship applications in 2013.

Driving growth organically and through acquisitions

The growth required in Hempel’s One Hempel – One Ambition strategy is expected to be achieved by growing its Decorative segment, mainly through acquisitions, and increasing its market presence in the Protective and Marine segments. These goals remain on track. Hempel’s Protective segment grew by nine percent and its Marine Maintenance segment grew by three percent in 2013, while Decorative was on par with 2012.

Pierre-Yves Jullien commented, “We reviewed and adjusted our One Hempel – One Ambition strategy plans in 2013. Our goal remains to become one of the world’s top-10 coatings manufacturers, but we now expect more growth will come from acquisitions as long as we find the right company with the skills and experience needed to complement our Group. We still know that nothing is better than organic growth, however, and we will continue to prioritize organic growth in the future.”

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

US Navy Tests Latest Aegis Weapon System

The U.S. Navy conducted a series of cooperative air defense test exercises with the Spanish navy that culminated in live missile firing events using the latest Aegis Weapon System baseline July 20-21.

Antwerp Port CEO Scoops Baron Title

After 25 years as CEO of Antwerp Port Authority, Eddy Bruyninckx has been raised to the nobility by H.M. the king of Belgium with the rank of baron. In Belgium

SENER Presents Two FORAN Papers at the Morintekh

In June, the SENER engineering and technology group participated in the 17th Morintekh – Praktik 2016 Scientific Conference, in the city of St. Petersburg, Russia.

Finance

Asia-N.Europe Box Rates Fall 8.1 pct

Freight rates for transporting containers from ports in Asia to Northern Europe fell 8.1 percent to $713 per 20-foot container (TEU) in the week ended on Friday,

Unipec: U.S. ANS Destined for Sinopec

Arbitrage opens after ANS discount widen on ample supplies. Unipec, the trading arm of top Asian refiner Sinopec, has bought two U.S. crude cargoes, including

G6 Updates Asia-North America West Coast Service

Two services will be merged into one until further notice / Reason is change in market demand / All other services remain unchanged. Members of the G6 Alliance

News

Kerry to Press ASEAN meeting for talks on SCS Disputes

U.S. Secretary of State John Kerry will urge Southeast Asian nations in meetings in Laos next week to find diplomatic ways to launch talks with China on easing

US Navy Tests Latest Aegis Weapon System

The U.S. Navy conducted a series of cooperative air defense test exercises with the Spanish navy that culminated in live missile firing events using the latest Aegis Weapon System baseline July 20-21.

Pathogenic bacteria hitchhiking to North and Baltic Seas?

For the first time, AWI scientists have found evidence of living, potentially pathogenic vibrions on microplastic particles. With increasing water temperatures

Mergers & Acquisitions

G6 Updates Asia-North America West Coast Service

Two services will be merged into one until further notice / Reason is change in market demand / All other services remain unchanged. Members of the G6 Alliance

RINA Closes Edif Group Acquisition

RINA S.p.A, the holding company of the multinational testing, inspection, certification and consulting engineering group based in Genoa, Italy, has announced that

Royal IHC, NETICS Join Forces

Royal IHC has entered into a partnership with NETICS, a civil engineering and consultancy agency. A leading global player in engineering with dredged sediments,

Wind Power

Boskalis Awarded Aberdeen Offshore Wind Farm Contract

Royal Boskalis Westminster N.V. (Boskalis) has been awarded the Offshore Balance of Plant contract by Vattenfall for the construction of Aberdeen Offshore Wind Farm,

DNV GL Seeks to Standardize Floating Turbines

DNV GL launched a new joint industry project (JIP) together with thirteen global partners to mutually develop a Recommended Practice for the coupled analysis of floating offshore wind turbines.

Seacat Services Sends Freedom to Race Bank

Seacat Freedom, the latest addition to Seacat Services’ 12-strong fleet, has been dispatched to DONG Energy’s Race Bank offshore wind project following the boat’s

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1353 sec (7 req/sec)