Norway's Astrup Fearnley has emerged stronger from a "challenging" 2020 — and with its faith in shipping's fundamental strengths reinforced.
But the disposal of a famous artwork by a British maestro helped keep it in the black.
The shipbroker and financial services group's chief executive Even Matre Ellingsen said in its annual report that last year had been a "stress test for just about every company in every industry".
But he added that despite the unprecedented events arising from the pandemic, 2020 ended with another strong performance from shipbroking and positive results for Fearnley Securities, its investment banking arm.
Fearnley Securities saw "significantly more active market conditions" in the second half of the year, especially within renewables, the CEO said.
The group was able to participate in numerous transactions in Norway and overseas in this sector, he added.
The offshore oil and gas vessel market endured a "challenging year", with markets dominated by owners restructuring and refinancing, Matre Ellingsen said.
Belief unshaken
But he added: "Our fundamental belief in the offshore sector remains positive."
Offshore divisions Fearnley Offshore and Fearnley Offshore Supply returned a profit.
The group said the balance sheet is solid and 2020 net earnings were NOK 494m ($57m), turning around a loss of NOK 46m in 2019.
But the group would not have been profitable without the sale of British artist Francis Bacon's painting Triptych Inspired by the Oresteia of Aeschylus at auction in the US last summer for $85m.
Astrup Fearnley listed NOK 664m in gains from the sale of non-current assets in its accounts.
Revenue grew to NOK 1.6bn from NOK 960m a year ago.
Parent company Astrup Fearnley AS is paying a dividend of NOK 200m to shareholders.
The group's debt stood at NOK 1.3bn as of 31 December, while its assets had a book value NOK 3.2bn.
Earlier in June, TradeWinds revealed Marius Hermansen is poised to become group chief executive of Astrup Fearnley on 1 July.
Hermansen stepped down in March from his current role as chief operating officer of John Fredriksen's Seatankers Management, where he will work his last day on 30 June.
Hermansen told TradeWinds he will oversee the Astrup Fearnley group's investment banking and shipbroking activities for commercial, offshore and supply vessels.
"We have a supercycle ahead of us in most of our markets and we intend to be part of it," he said.
Owner died aged 82
"We have 350 great people across the world in shipping, energy and new green business."
Matre Ellingsen, who has been group chief executive since early 2019, will continue as CEO of Astrup Fearnley Holding, the group's holding company, and will take responsibility for the group's real estate portfolio.
In April, the group lost Hans Rasmus Astrup, the former head and owner of shipbroking arm Fearnleys, who died at the age of 82.
