VIKING Reports 10 Years of Profit Growth

Posted by Eric Haun
Thursday, March 13, 2014
Henrik Uhd Christensen

VIKING Life-Saving Equipment A/S announced its 2013 financial results, reporting growth in both turnover and profits for 10 straight years.

The Danish-based company with a worldwide presence said it has “once more beaten the odds in an industry plagued by reductions in passenger and cargo ship newbuilds, falling exchange rates in key markets and downward price pressure.”

Adjusted for falls in the U.S. dollar exchange rate, currencies pegged to the dollar, and European member state non-euro currencies, the company’s turnover for 2013 increased 6 percent to DKK 1.612 billion, VIKING said. Profit before tax grew more than 20 percent to a record DKK 141.2 million.

“Our earnings have now reached an appropriate level for a healthy manufacturing company,” says VIKING CEO Henrik Uhd Christensen. “In 2013, VIKING achieved moderate growth in turnover, and the increased profit level primarily reflects internal improvements. We have, in fact, been able to reduce the costs of administration, logistics and production while simultaneously strengthening customer service.”

Long-term strategy in a sluggish market
As a manufacturer of maritime safety equipment, VIKING is closely tied to the newbuild market for passenger and cargo ships, a market that the company said has been declining in recent years. Southern European countries, in particular, the traditional stronghold of ferry traffic in the Mediterranean, are still feeling the effects of the economic crisis. Moreover, low economic growth rates in several large markets have had considerable influence on global cargo traffic which, in turn, affects contracts for new cargo ships.

“We have been able to handle the worldwide market saturation of recent years because VIKING’s owners take a long-term approach to expanding our global market position, focusing on growth and making sure we are right where our customers are,” said Henrik Uhd Christensen. “During the crisis years, we have continued to develop a competitive product portfolio based on concepts and services tailored to each customer’s specific needs.”

Offshore market continues to grow
Henrik Uhd Christensen points to the VIKING Shipowner Agreement, where his company offers to take care of all aspects of a shipowner’s safety equipment and servicing tasks for predictable, transparent prices. It’s a concept that addresses shipowner needs for flexibility at a time where access to financing is limited, and has quickly become the industry’s gold standard since its launch four years ago.

With its broad product portfolio, VIKING has also been able to compensate for slower activity in some market segments by expanding in more promising ones. Here the offshore industry stands out, with growth rates fueled by continued high oil prices.

“As the hunt for new oil and gas discoveries moves further from shore, higher-quality safetyequipment and servicing arrangements are necessary,” said Henrik Uhd Christensen. “With a product range well-suited to the North Sea and polar conditions, and with a specialised offshore business unit based in Norway, VIKING is uniquely positioned to dominate the offshore market for the foreseeable future.”

2014 just as difficult
Despite difficult prevailing market conditions, VIKING expects to see growth both in turnover and profit during 2014.

“We are again facing a challenging year where there is little room for improvement in newbuilds, or strong growth in other areas. We expect the passenger and cargo markets will marginally improve, and that the offshore market will continue to show its strength. Within these largely unchanged parameters, we will continue to be on the offensive with our products and services, tailored to individual customer needs,” said Henrik Uhd Christensen.

The positive earnings for 2013, combined with a conservative dividends policy, have contributed to further strengthening the company. VIKING’s equity at the end of the financial year amounted to DKK 617.2 million.

viking-life.com

  • VIKING Offshore Evacuation System

    VIKING Offshore Evacuation System

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Royal IHC introduces IHC Workhorse

Royal IHC has announced an extension to its innovative range of vessels with the introduction of the IHC Workhorse. This new design for a hybrid anchor handling

‘Row around Singapore Island’ Takes off today

The epic endurance challenge that will see 32 volunteers rowing 140km non-stop around Singapore is starting in less than 24 hours. The project has raised a staggering $450,

Anthem of The Seas Christened in Southampton

Royal Caribbean's newest ship, Anthem of the Seas, was named in Southampton, U.K.,  in a spectacular ceremony.   U.K. travel agent godmother  Emma Wilby named the 4,

Finance

U.S. Ports Account for 26% of Nation’s Economy

From 2007 to 2014, the total economic value that U.S. coastal ports provide in terms of revenue to businesses, personal income and economic output by exporters and importers rose 43 percent to $4.

Titan, Svitzer Merger Creates Global Salvage Giant

Svitzer, salvage division of AP Moller-Maersk and Titan Salvage, a division of Crowley Maritime Corp are merging their salvage operations to create a new market leader.

Rejig at Pan Ocean

South Korean bulker operator Pan Ocean re-sumitted its rehabilitation plan to the South Korean court that will see discount rate of cash repayment and decision of reduction of capital.

News

Royal IHC introduces IHC Workhorse

Royal IHC has announced an extension to its innovative range of vessels with the introduction of the IHC Workhorse. This new design for a hybrid anchor handling

‘Row around Singapore Island’ Takes off today

The epic endurance challenge that will see 32 volunteers rowing 140km non-stop around Singapore is starting in less than 24 hours. The project has raised a staggering $450,

U.S. Ports Account for 26% of Nation’s Economy

From 2007 to 2014, the total economic value that U.S. coastal ports provide in terms of revenue to businesses, personal income and economic output by exporters and importers rose 43 percent to $4.

Marine Equipment

Royal IHC introduces IHC Workhorse

Royal IHC has announced an extension to its innovative range of vessels with the introduction of the IHC Workhorse. This new design for a hybrid anchor handling

Siemens Wins Vessel Electrical Installation Contract

Nautilus Minerals Inc. announces that the order for the supply of the entire electrical installation for the production support vessel has been awarded to Siemens International Trading (Shanghai) Ltd.

Hull Inspection Systems Delivered to the US Navy

Bluefin Robotics has delivered new vehicles to the U.S. Navy that aim to increase the Navy's capability to remotely search and investigate ship hulls, harbor sea

Maritime Safety

U.S. Navy Warship Steams Toward Yemen

The United States Navy is prepared to intercept Iranian ships in Yemeni waters using the USS Theodore Roosevelt and other ships, reports the AP.   According to this report,

Biloxi Industrial Seaway Closed Due to Landslide

The U.S. Coast Guard closed the Biloxi Industrial Seaway in Gulfport, Miss., due to a landslide, Saturday.   The Biloxi Industrial Seaway in the vicinity of the

IMO Conference to Address Ferry Safety

Conference on the enhancement of safety of ships carrying passengers on non-international voyages, Manila, the Philippines, April 24, 2015   The International

 
 
Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion 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: 0.4753 sec (2 req/sec)