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 Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Tugboat Capsizes Near 106th Bridge, Chicago

The Coast Guard informs it is responding to the capsize of a tug on the Calumet River near the 106th St. Bridge in Chicago, in which the two crew members were able

Oceanteam Focuses on Mexico Strategy

Oceanteam Shipping ASA releases its Q2 2014 financial report, with extracts as follows: The company says it saw, with its early focus on Mexico, a long term

HAL & Kelly Clark in ‘Attorneys Who Matter’ List Again

The Ethisphere Institute, the global leader in defining and advancing the standards of ethical business practices, recognized Holland America Line and Seabourn’s

Finance

Oceanteam Focuses on Mexico Strategy

Oceanteam Shipping ASA releases its Q2 2014 financial report, with extracts as follows: The company says it saw, with its early focus on Mexico, a long term

ARENA Supporting Bright Ideas in Solar R&D

The Australian Government today announced $21.5 million funding for 12 cutting edge R&D projects that will keep Australia at the forefront of solar research.

Big Increase in Port of Houston Steel Cargoes

More steel moved across the docks in July than any month since 2008, Executive Director Roger Guenther reported at the recent meeting of the Port Commission of the Port of Houston Authority.

News

Narendra Modi Eyes Breakthrough Nuclear Pact with Japan

India is hoping to win Japanese backing for a nuclear energy pact during a visit by Prime Minister Narendra Modi, and lure investment into its $85 billion market

Venezuela Considers Importing Crude for the First Time

PDVSA would use its own fleet to transport imported crude; Purchases of crude imports would reduce costs; Venezuela has been exporting oil for a century Venezuela

USCG Shares Safety Tips for Labor Day, Riverfest

Labor Day weekend marks the unofficial end of the boating season and is known as one of the busiest recreational boating weekends on the Ohio River. With approximately 2,

Mergers & Acquisitions

LNG Finalizes Acquisition of Bear Head LNG Project

Liquefied Natural Gas Limited today informed having finalised the acquisition of 100% of Bear Head LNG Corporation (BHLC). This follows the announcement

CEVA Expanding Presence in Southern California

CEVA Logistics, one of the world’s leading supply chain management companies, today announced plans to expand its presence in the San Diego market with a new

Transnet National Ports Authority Orders 9 Voith Water Tractors

In South Africa’s largest local shipbuilding contract Transnet National Ports Authority has ordered nine new Voith Water Tractors (VWT) for use in several ports across the country.

Wind Power

OWS Christens Damen Fast Crew Supplier

Offshore Wind Services’ (OWS) latest Damen vessel – the Fast Crew Supplier 2008 Offshore Waddenzee - was officially named at Damen Oranjewerf Amsterdam, on August 22.

Vestas Profit Beats Forecast

Danish wind turbine maker Vestas Wind Systems posted much higher than expected second-quarter earnings and slightly increased its guidance for the full year, signaling

OSV Hull Arrives at Havyard's Leirvik Yard

Havyard says that newbuild number 118 has arrived from Turkey at the yard in Leirvik, being the first of two vessels that will be outfitted to provide service and

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pipelines Port Authority Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2796 sec (4 req/sec)