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The Grieg Group Reaches the One Billion Mark
The result after tax includes the previous tax provisions and taxes paid in a total amount of NOK 446 mill, following the ruling of the Norwegian Supreme Court regarding retroactive tax for shipping companies.
Grieg Shipping Group –Strong Results in Spite of Downturn in the Shipping Market Grieg Shipping Group is a fully integrated shipping group that own, market and operate one of the world’s largest open-hatch fleets. The Shipping Group has 800 employees in 14 countries. Our specialized vessels are tailor made for safe and fast handling of cellulose and paper. Windmills, turbines and machinery comprise a fast growing segment. The large, flat ship-decks are perfectly suited and equipped for transportation of containers and other types of cargo that are too large to be transported in ordinary freight rooms. The group also operate a fleet of conventional dry-bulk ships equipped with cranes and grabs, and manage a considerable financial portfolio. In spite of a shipping market that experienced a sharp downturn in 2009, Grieg Shipping Group can report a consolidated pre-tax profit of NOK 390 mill for 2009. This is mainly due to substantial improvements in financial income and a solid contribution from our activities within dry cargo operation. This is a strong improvement compared to 2008 with pre-tax result of NOK 199 mill. Operating revenues came to 3 514 mill in 2009, a decrease compared 2008, due to lower transport volumes and freight rates on our open –hatch vessels. The operating expenses of the Shipping Group increased slightly compared to the previous year, but because of considerable efforts to achieve cost savings in a demanding market, the increase was lower than budgeted. Shipment by sea is the most environment-friendly way of transporting goods from one place to another. Nevertheless, shipping operations entail the discharge of harmful emissions into the sea and the air. The Shipping Group’s contribution to the climate challenges is a long term vision reflecting a commitment to have zero harmful emission into the sea and the air. During 2009, the international environmental standard ISO 14001 was awarded to the Group’s ship management operations. As the single Norwegian shipping company, the Grieg Shipping Group signed the UN Global Compact and its ten principles on human rights, working conditions, the environment and anti-corruption. The Shipping Group has made a commitment to implement these principles in strategies and business operations, and to report on progress. In order to highlight the progress made, reporting is done in accordance with the Global Reporting Initiative (GRI) in the Grieg Shipping Group’s annual report. Joachim Grieg & Co – Expanding into New Business Areas For the Group’s shipbroking company ordinary profit before tax came to NOK 10 mill in 2009. This is a decrease of NOK 4 mill compared to 2008, due to difficult markets in the aftermath of the financial crisis. Joachim Grieg & Co have a clear strategy for further growth. In 2009 the company worked in two units, a dry cargo department, and a department for sale and purchase of ships. Since January 2010 the company has expanded into the gas market, and there are also plans for further expansions into the chemical and tank business this year. Grieg Logistics – Strengthened Position in the Energy and Offshore Market Grieg Logistics is now the largest, privately owned Norwegian logistics provider to the shipping-,oil and energy- and maritime industries. 2009 has been a challenging year to the entire global logistics business. The majority of our competitors had their turnover reduced with 10-30 %. In view of this, Grieg Logistics had a nice development in 2009 with operating revenues of NOK 862 mill against NOK 861 in 2008, and an operating profit of NOK 15 mill. By the end of the year the company had 200 employees. The company is established in Rotterdam, Singapore and Shanghai in addition to 14 departments from Tromsø to Gardermoen in Norway. The rough times we have seen, and still see in Norwegian industry has lead to a very high bidding activity throughout the year. Grieg Logistics has managed to do well in this hardened competition, and has by the end of 2009 secured a good and long term portfolio of contracts within our preferred markets. The company has also accomplished several internal improvement processes during the year. Through this Grieg Logistics has strengthened its position within the qualitatively demanding energy and offshore market. This will strengthen the foundation for the company’s further growth within defined niches in the market for advanced logistics services. The Grieg Group’s emphasis on renewable energy through NorWind is expected to result in activity for Grieg Logistics in the form of logistics projects during building and installation of offshore windmills. NorWind – Pioneer installation of deepwater wind farm foundations NorWind’s core activity is installation of deepwater wind farm foundations for offshore wind turbine generators. Through their owners, investments, board/management and general industrial networks, NorWind represent major industrial experience and competence within offshore wind, marine operations, logistics, design and engineering. In 2009 NorWind installed six steel foundations for the first German offshore wind project, Alpha Ventus. This was the world’s first offshore wind power project where steel foundations were based on pre-installed pillars. It was a capital intensive pioneer project with operating revenues of NOK 315 mill, and negative results as expected. The Grieg Group owns 40% of NorWind. MARIS – Major Contract With United Kingdom Hydrographic Office MARIS (Maritime Information Systems AS) had an operating revenue of NOK 82 mill in 2009, and an ordinary profit before tax of NOK 2 mill. In 2009 MARIS was awarded a seven year contract by United Kingdom Hydrographic Office (UKHO) as the supplier of an ordering, management and maintenance system for marine navigational products and services. The general market situation for the products of the company has been characterized by the global recession in 2009. However, the products and services of MARIS are considered to hold considerable potential, and the company is well positioned both with regards to technology and prices. The Grieg Group owns 85% of Maris through Grieg International. Grieg Investor – A Long View Perspective Proved Successful Grieg Investor is an investment consultancy and one of Norway’s leading independent advisors within the segment for institutional investors. The services include; assistance in making an investment strategy, investment manager selection, performance measurement and attribution analysis and asset-liability-modelling for pension funds. Grieg Investor works with a broad range of institutional clients like life insurance- and non-life insurance companies, municipalities, foundations and family offices. The accounts for 2009 are characterized by stable incomes as a result of a stable client portfolio, and less new clients than budgeted. The costs are slightly higher compared to 2008, mainly due to new hiring. The clients have mainly kept their investment strategies through 2008 and 2009, and as a result most portfolios have recaptured their losses from 2008 in 2009. This illustrates the importance of applying a long view perspective. Grieg Seafood ASA – Strong profit growth The Grieg Maturitas Group had a 44% shareholding in the listed company Grieg Seafood ASA per 31.12.2009, and the company is incorporated in the Grieg Group’s accounts as an associated company. Grieg Seafood had a strong profit growth in 2009. This is a result of improved operational performance and a continued strong salmon market. The profit before tax (IFRS) came to NOK 318 mill compared to a negative result of NOK 402 in 2008. Equity (IFRS) for Grieg Seafood is NOK 1,4 bill. Grieg Seafood operates fish farms in Norway, Scotland and Canada. Grieg Foundation – 88 million awarded in 2009 Grieg Foundation supports education of children and youth, art and culture projects and medical research. Grieg Foundation contributed to national and international projects with NOK 88mill during 2009, and is committed to considerable additional funds for accepted projects over the next years. The Grieg Group is proud to have a shareholder like Grieg Foundation and the work it represents. Prospects The Grieg Group has strengthened its position during 2009 and has a strong and solid balance. We operate within several segments that are all well positioned for future growth, and to meet and master the challenges of the world economy. Our reputation is good and our employees are competent and dedicated. We realise that 2010 will be a challenging year within our business areas. Competition is expected to remain strong, and periodic cycles will occur in most segments with regards to prices, rates and volumes. Company Structure  Press contact:
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