2016 was an extremely challenging year for the global oil and shipping industries and like other players in the industry, the crisis has left its clear mark on Monjasa Holding A/S’s 2016 annual report. This year however, the Monjasa Group has turned developments around and shows positive net results.
The annual report for 2016 displays an expected decrease in revenue to 1.2bn USD (2015: 1.6bn USD) primarily because of a 19% decrease in oil prices and a net result of -26m USD (2015: 24m USD).
However, following a focused and a proactive effort, the company can already at this point show positive net results for the first quarter of 2017. At the same time, Monjasa Holding A/S presents a high solvency ratio of 36% and a consolidated equity of 113m USD in the annual report.
Following a focused and a proactive effort, the company can already at this point show positive net results for the first quarter of 2017.
Market wise, Monjasa essentially maintains its global market shares with a modest decrease in volume from 4.1m tonnes to 3.8m tonnes.
”We have adjusted to the new normal in global shipping”
Monjasa Group CEO, Anders Østergaard says:
”Like the majority of our competitors and customers, we can conclude that 2016 was an extremely challenging year in global shipping. Therefore, we have been working very focused on optimising our core business and adjusting to the new normal in global shipping with lower margins in all our primary markets.”
”It is difficult to protect oneself against a global shipping crisis which was further worsened in 2016 with a downward trending demand for transportation of goods, a widespread overcapacity, and a ruined offshore sector because of the very low and continually decreasing oil prices.”
”Therefore, I concentrate on the fact that we present a positive result in this year’s first quarter, despite the very unsatisfying result in 2016. This demonstrates that our core business is healthy and that the many proactive adjustments we have put in motion are paying off.”
Strong reduction in working capital and a continued focus on compliance
Among other things, Monjasa has optimised its business by adjusting the size of their fleet from 26 to 20 tanker vessels to match the current market demands. At the same time, credit agreements and oil storages have been significantly optimised, with a total reduction in working capital of 75m USD.
Despite the historically weak shipping markets, the Monjasa Group continues its investments in e.g. digital compliance systems for screening of all counterparts. Also, to further push for increased HSEQ efforts the Monjasa Group, as the world’s first bunker company, has obtained upgrades to the latest standards of ISO certifications (ISO 9001:2015 and ISO 14001:2015) in Quality Management and Environmental Management.
Facts about developments in the oil and shipping industry 2016
• The Danish shipping export decreased by 18% from 2015 to 2016
Source: Danish Shipping
• Price on bunkers decreased by 19% from 2015 to 2016
Source: ’3,5% Rotterdam barges’ index
• Average Europe Brent Oil decreased from 52 USD to 44 USD from 2015 to 2016
Source: EIA (US Energy Information Administration)