GLOBAL towage provider Svitzer has enjoyed a strong trading start to 2024 and its demerger from AP Møller – Mærsk A/S has been confirmed by the latter’s shareholders at an EGM.
Late last week Svitzer revealed 1Q24 revenues of DKK 1,555 million ($342.452 million), representing 11% growth year-on-year (1Q23: DKK 1,424 million). Adjusted EBITDA was DKK 479 million (DKK 420 million) and the adjusted EBITDA margin was 30.8% (29.5%).
Svitzer said its “growth journey” continued in the first quarter thanks to the commencement of terminal towage contracts in Europe and Australia secured in the second half of 2023.
In the first quarter of 2024, Svitzer was awarded a new contract to service an FSRU (Floating Storage Regasification Unit) in Santos, Brazil.
Last month Svitzer extended its existing agreement with Smit-Lamnalco to continue providing towage service delivery on behalf of Smit-Lamnalco in four ports in Australia for a four-year period until 31 August 2028. Under the extended agreement, Svitzer will continue to charter six vessels from Smit.
The 1Q figures reveal Svitzer’s Australian business accounted for 35% of its total revenue, compare to 15% for AMEA, 15% for the Americas and 36% for Europe.
Reviewing the Australian performance Svitzer said the solid financial performance was driven largely by tariff increases in Harbour Towage (rate were increased by an average of 5.2%; DCN 14 March), revenue effect from commencement of a Terminal Towage contract in 2023 and special tug jobs performed during the quarter. Two newbuild vessels were delivered for the company’s BHP contract at Port Hedland.
CEO Kasper Friis Nilaus said Svitzer was off to a good start for the year with a strong financial and operational performance. The full-year 2024 outlook is maintained: 3.5-5.0% growth (constant exchange rates), and adjusted EBITDA of DKK 1,700-1,800 million (excluding separation and listing costs related to the demerger from AP Moller–Maersk).
As previously announced (DCN 9 February) parent APMM decided to spin off Svitzer as part of a long-term plan to simplify the APMM business. Following last week’s shareholder vote, Svitzer Group A/S began trading on Nasdaq Copenhagen yesterday [30 April]. Svitzer will continue to be headquartered in Copenhagen and operate under the same Svitzer name.
Svitzer has been part of the Maersk Group of companies for more than 40 years. In 1979, Maersk became a majority shareholder of Svitzer and acquired it shortly after.
