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

People & Company News

Apply Now for the MN 100

The August 2016 edition of MarineNews, the leading voice in the North American workboat market, will feature 100 leaders and innovators, including workboat owners and operators,

Mothballed Vessels SE Asia Reflect Oil Slump Pain

Around 1,300 offshore support vessels lying idle worldwide. Not everyone in shipping is bemoaning the industry's worst crisis in living memory: a cluster of

Striking Port Workers Protest Greek Port Sales

Greek port workers walked off the job for a sixth day on Tuesday and marched through central Athens to protest the state-sanctioned selloff of the country's two largest ports,

Finance

Baltic Index Up On Higher Capesize Demand

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Tuesday helped by an increase in demand for capesize vessels.

Mothballed Vessels SE Asia Reflect Oil Slump Pain

Around 1,300 offshore support vessels lying idle worldwide. Not everyone in shipping is bemoaning the industry's worst crisis in living memory: a cluster of

Asian Traders Unload Floating Gasoline as Market Flips

Gasoline shifted from tankers to landed storage or sold off; forward gasoline prices to flip to backwardation from July. The number of tankers storing gasoline

Coatings & Corrosion

WSS: Post-combustion Fuel Treatment Cuts Vessel Costs, Risk

Wilhelmsen Ships Service, a provider of products and services to the shipping industry, is advising vessel operators to wage war on soot. According to WSS, soot

Industry Group Developing New Hull Coating System

PPG’s protective and marine business has received EU Funding for a project which aims to produce a new fouling protection system for commercial vessels.   A project development group including PPG,

Petronas Chooses Jotun Antifoulings

Petronas has selected Jotun’s Hull Performance Solutions (HPS) antifouling system for two LNG vessels chartered from MISC.   The advanced antifouling coatings

News

EU Ships in Libyan Waters Would Undermine Tripoli Govt

The U.N.-backed government in Libya has not invited European ships into its territorial waters to help stop people smuggling because this could harm efforts to

Damen Delivers Floating Pump Station to Hamburg

Hamburg Port Authority (HPA) has taken delivery of the Sauger III, a custom floating pump station by Damen Shipyards Group for supporting dredging operations. Situated

ABB Software to Monitor Cosco Heavy Transport Fleet

ABB, a power and automation technology group, will supply its onboard motion monitoring and forecasting system to the Xiang Rui Kou heavy lift vessel, meaning the

Mergers & Acquisitions

Striking Port Workers Protest Greek Port Sales

Greek port workers walked off the job for a sixth day on Tuesday and marched through central Athens to protest the state-sanctioned selloff of the country's two largest ports,

Strategic Marine Building Luxury Crewboat

Strategic Marine announced the kick-off of its first collaboration with PT. Pelayaran Tanjung Kumawa, expecting to deliver an exclusive luxury crewboat in November this year.

Harding Sold to Palfinger

The PALFINGER Group has signed today the acquisition of 100 per cent of the shares in Herkules Harding Holding AS and thus, the globally operating Harding Group.

Wind Power

DNV GL’s Ellen Crivella Named 2016 Rising Star by Women of Wind Energy

DNV GL’s Ellen Crivella was honored with the 2016 Rising Star Award at the Women of Wind Energy (WoWE) luncheon at the 2016 AWEA Windpower Conference and Exhibition.

VOS Sugar First Charter

The newest addition to Vroon’s fleet, subsea-support vessel (SSV) VOS Sugar, recently started work in the BARD Offshore 1 Offshore Wind Farm (OWF). The vessel

China COSCO Moving to Offshore Winds

China COSCO Shipping, which uses bulk carriers and container vessels to transport goods, has seen its cargo business decline amid China's slowdown and has decided

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Port Authority Ship Repair Ship Simulators 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: 0.0637 sec (16 req/sec)