In 2022, Lauritzen Bulkers further improved its financial performance and the operational result* of its core dry bulk activities amounted to USDm 115 compared to USDm 91 in 2021.
“Despite macroeconomic headwinds and declining freight rates gradually evolving over the year, we were able to improve our financial performance compared to 2021, giving us the best result for more than a decade”, says Niels Josefsen, CEO of Lauritzen Bulkers. He added that “our short-term book, long-term book, and asset management book all performed better or in line with expectations due to the extraordinarily good performance of the entire organisation”.
Main initiatives and events
- Our team of highly experienced operational and chartering staff strengthened our relations with clients in defining their marine transportation needs.
- Our vessel operation model was further refined, focusing on optimising voyage planning, execution, and post-operation services to solve clients’ pain points.
- Our business model was further refined during the year and our Asset Management Book, responsible for commitments over two years including vessel ownership and sale and purchase of vessels, had its first year of operation. Towards the end of the year, we decided to establish a dedicated Freight Forward Agreement (FFA) Book, which commenced operation in early 2023 providing FFA hedging across all Lauritzen Bulkers’ business areas.
- We continued our efforts towards decarbonising our operations by renewing our fleet with more fuel-efficient ships. In 2023, we expect to invest in retrofitting vessels to reduce carbon emissions and enable accurate reporting on emissions to clients and authorities.
- Six newer handysize bulk carriers were acquired during the year by declaration of purchase options connected to long-term time-charter vessel agreements.
- Three older handysize bulk carriers were sold at the peak of the market, generating a net profit of USDm 20.8.
- A further four vessel purchase options were executed for delivery in 2023.
The net profit from the core dry bulk activities was USDm 102.5. However, as part of the restructuring of the J. Lauritzen group after the formation of BW Epic Kosan, Lauritzen Bulkers merged in 2022 with its subsidiary Lauritzen Bulkers Ship Owner and its sister company J. Lauritzen Invest with retroactive effect from 1 January 2022. Lauritzen Bulkers’ result was negatively impacted by USDm (25.3) due to the distribution of assets in the restructuring. The combined net profit thus amounted to USDm 77.3 compared to USDm 96.0 in 2021.
Outlook for 2023
The outlook for 2023 is impacted by macroeconomic and geopolitical uncertainty, which is expected to continue during the first half of the year. We expect dry bulk markets to gradually improve during the second half of the year supported by the limited supply growth in the handysize bulk carrier segment. Lauritzen Bulkers is positioned to take advantage of expected market improvement in the second half of the year by having an overweight of cargoes in Q1 and thereafter excess open vessel capacity.
For further information, please refer to our Annual Report 2022.
Contact: Niels Josefsen, CEO, phone + 45 33 96 83 00 or + 45 28 93 07 11
*Net result before unrealised hedging