Blue Water earnings rise in challenging 2023
The transport and logistics group, Blue Water Shipping, has closed the year 2023 with a profit of $21 million, up from the $12 million profit reported in 2022. The company said that the global freight market was affected by a slowdown in freight volumes. The declining demand contributed to a drop in rates, which in recent years have been significantly higher than normal due to capacity issues in the industry, the company said, noting in its statement that it is satisfied with the financial results in such market conditions.
“We are pleased with the result for 2023, as we have delivered a solid improvement in the bottom line in a fluctuating and challenging market. The foundation is strong, and all our business areas contribute positively to the overall result. Our employees have once again demonstrated their ability to deliver effective solutions for our customers even under difficult conditions. Our service level remains very high,” says Søren Nørgaard Thomsen, CEO of Blue Water.
Revenue rallied in the last part of 2023
The significant decline in freight rates during 2023 has had a small impact on Blue Water’s revenue – with a decrease of 3 per cent. Revenue in 2023 was $1.29 billion compared to $1.34 billion the year before. A decisive factor is increasing market shares in several parts of the business. General cargo increased for Blue Water in the second half of 2023, but revenue was particularly impacted by expansion in the Energy, Ports & Projects division, where several significant contracts were won in 2023 and new offices were established, contributing to new revenue.
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“We experienced – contrary to the market – increasing freight volumes at the end of 2023. We are excited about this, however, we are also experiencing that we must work harder to retain and win customers, as the lower rates and volumes have increased competition,” says Nørgaard Thomsen.
Revenue growth expected in 2024
Looking forward to 2024, the company expects a profit in the range of $22 to $25 million. Blue Water expects to see positive contributions from its newer offices in Australia, Guyana, Türkyie and China, among others.
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“In 2024, we will follow our strategy with a focus on streamlining, consolidation and profitable growth. We are also aware that the current – and new – geopolitical, financial and economic conditions may affect our activities and opportunities to serve our customers in 2024. This requires that we remain ready to act and react to the changing conditions, but I am confident that we can as it is in our DNA,” says Nørgaard Thomsen.
