News / April 25 2024

Another solid year for Grieg Maritime Group

With a consolidated profit before tax of USD 30.7m and the ordering of four highly efficient newbuilds, 2023 was a strong year for Grieg Maritime Group.

2023 was a highly volatile year geopolitically, with fluctuating markets. We operate in a post-covid world harmed by brutal conflicts. From the business perspective, Grieg Maritime Group saw reduced freight rates, upward pressure on vessel operating costs, and favourable currency effects. The latter positively impacted personnel costs and financial items. Strong equity and bond markets were also positive.


Newbuildings and climate action

Grieg Maritime Group is dedicated to half our CO2 emissions by 2030, compared to 2008. A vital part of this reduction will come as a result of our 2023 order of dwt Open Hatch vessels delivered by CSSC Huangpu Wenchong in China in 2026.

These PulpMax vessels will be far more energy-efficient than our present vessels. In addition, there is a pathway towards their next fuel, be it green ammonia, methanol, or carbon capture and storage. Where our industry is now, flexibility concerning energy is critical to success Matt Duke, CEO Grieg Maritime Group

Still, a significant proportion of our emissions reductions must come from measures implemented on our current fleet. In 2023, we implemented efficiency measures and tested emerging technologies for our Open Hatch vessels. One of the most noteworthy initiatives is testing a fuel catalysation technology aimed at improving fuel performance.

Moreover, we have launched a pilot project to assess the effectiveness of a graphene-based anti-fouling coating system. Apart from improving emission performance, this innovative solution has the potential to reduce paint usage and minimise the release of biocides and microparticles into the marine ecosystem.

We are also actively supporting the development of Navtor’s Green AI for Sustainable Shipping. This AI-based model helps optimise speed and fuel consumption across the fleet.


Financial results

Most of the group’s revenue comes from freight income, recorded as time charter hire in the financial report. In 2023, total revenue amounted to USD 179.1 million, a decrease from USD 319.3 million in 2022. With significantly lower revenues than the decrease in operating expenses, the group’s EBITDA was reduced to USD 65.4m in 2023 (USD 202.3m in 2022). The group’s operating profit ended at 33.2m (USD 170.6m) in 2023. That brings the group’s equity ratio up to 62% ex-dividend, compared to 53% in 2022.


After all, 2023 turned out to be a financially strong year for us. We expected a lower result than the all-time high of 2022 and delivered 30.7 million USD before tax. This is primarily due to the Open Hatch market slowing down after the peak in 2022. As our business is weighted on long-term contracts, the fluctuations are less dramatic, and there is a delay relating to the ups and downs of the market Matt Duke, CEO Grieg Maritime Group

Building new sustainable business

Grieg Green navigated a slow recycling market in 2023 by expanding its service offering. The ship recycling industry can be opaque when it comes to sustainability, safety and working conditions, making it difficult for shipowners to make informed decisions. To address this problem, Grieg Green initiated YardScore in 2023, an in-depth ESG rating system for recycling and repair yards. YardScore will provide more transparency and an incentive for continuous improvement for all stakeholders involved in ship repair, drydocking and recycling. At the end of the year, Grieg Green acquired a 51% stake in ReFlow, a Danish software provider and expert in lifecycle emission modelling for the maritime industry. The acquisition brought new skills to the team, and the combined offering provides a more comprehensive and future-proof range of environmental services.

Our investments through Grieg Edge aim to diversify the group’s activities. Skarv Shipping, our joint venture with the Peak Group, ordered four 7,000 dwt low-emission multipurpose project carriers in 2023, initiating our entry into short-sea shipping. Our efforts within new forms of energy for maritime business continue, with a strengthening of North Ammonia, our JV with Arendals Fossekompani. 2023 also saw GreenH, a part of our New Energy portfolio, secure a contract comprising a 15-year hydrogen supply agreement for Torghatten’s Lofoten ferries. Our Ocean Ventures portfolio also had a positive development in 2023.


Changes to reporting

The Annual Report for 2023 combines the reporting of our financial, environmental, social, and governance situation. This is important for our organisation’s behaviour when working towards a more sustainable future. Our goal is to show the connectivity between how Grieg Maritime Group’s capital and human resources create value in the short, medium, and long term in the context of external trends, risks, and opportunities to our business model.

The report is a big step towards complying with the European Union’s Corporate Sustainability Reporting Directive and the European Sustainability Reporting Standards. Grieg Maritime Group has carried out its first Double Materiality Assessment and Climate Change Risk Assessment as part of this compliance.

This year’s report also includes a new section on the EU Taxonomy. It discloses the proportion of Grieg Maritime Group’s business eligible for the taxonomy (and not eligible) and its significance.


Media Contact:

Sveinung Tvedt
Head of Communications
+47 920 85 926

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