Selfinvest, the holding company of Denmark's Ostergaard-Nielsen family, has emerged from a pandemic-hit year with its third best profit ever.
The company, which owns the United Shipping & Trading (USTC) bunker and tanker group, said its investments had cemented its strong financial position, but the effect of Covid-19 on tanker and bunker demand saw earnings decline sharply in those divisions.
Selfinvest's revenue in the 12 months to 30 April totalled DKK 66bn ($10.6bn), with pre-tax profit at DKK 621m.
Revenue in the previous year was DKK 72bn and profit DKK 1bn.
USTC's Uni-Tankers unit operates a fleet of 38 owned and chartered modern product and chemical tankers through offices in Denmark, Turkey, France and the US.
Revenue fell by 3.4% during the year to DKK 1.25bn, and the net loss was DKK 36m.
"The [Uni-Tankers] result for the year is not considered satisfactory but is seen as an inevitable consequence of the pandemic," Selfinvest said.
In recent years, Selfinvest has pursued a growth strategy aimed at giving the group "more legs to lean on", the company added.
"Considering the uncertainty, we saw at the start of the financial year and how turbulent the year has been, I am proud of the results we have achieved," said USTC co-owner and chief executive Torben Ostergaard-Nielsen.
"We have managed to grow and expand our market positions despite the crisis, and our employees around the world have delivered an impressive effort in a very unusual year."
Bunker volumes up
Fuel supplier Bunker Holding delivered a 10% growth in volumes as market share increased.
But the bottom line fell due to a "pressured bunker market with very low oil prices", Selfinvest said.
Logistics arms SDK Freja more than doubled its earnings after a landmark year, the company added.
Selfinvest's total investment result was DKK 202m, corresponding to a return above 16%.
"We have used the past year to think ahead and lay out a new strategy for our investment activities, where we have especially upgraded investments in real estate and directly in growth companies," Selfinvest director Mikkel Hammershoj said.
Co-owner Nina Ostergaard Borris, the CEO's daughter and chief operating officer of USTC, added that the group has chosen to make investments that give it "more legs to lean on".
Second daughter Mia Ostergaard Nielsen, also a co-owner, joined the group as head of corporate governance in May.
Big progress in a year
"Looking back on the past year, we have focused on strengthening and growing our various units. The acquisition of OceanConnect, CM Biomass and Freja are good examples of how far we have moved in just a year's time," added Ostergaard Borris.
The company believes its family ownership gives it the agility to make rapid decisions, while giving it a longer-term perspective.
"We have always been ready for change and to move the company to where the next opportunity is," Ostergaard-Nielsen said.
"At the same time, we can plan and maintain a constant course without having to worry about temporary ripples on the surface."
Investments being made now may not generate return next year, but only in several years time, he believes.
