A challenging year 

Each year, when we publish our Annual Report,
our CEO sums up the year that has passed. This is our 2020. 

From our CEO

In our latest annual report, we naturally focus on 2021.  However, in writing this in March of 2022, we are deeply saddened to see war in Europe, with a shocking humanitarian crisis unfolding in Ukraine. We sincerely hope a peaceful solution will be found soon.

Whilst the conflict has not directly affected our business operations, we are clearly concerned about the effects of energy prices and the destabilisation of Europe from a broader perspective in 2022 and beyond. We continue to monitor this situation closely.

Casting our gaze back to 2021, it has been another eventful year. We have dedicated ourselves and our strategy to support the UN Sustainability Goals for some years now. We saw an opportunity to reshape our business and widen our scope through this sustainability-based strategy work. 

2021 was the first full year since we renamed the company “Grieg Maritime Group”, and we have worked systematically to strengthen each of our business units.  

Matt Duke

Matt Duke
CEO Grieg Maritime Group

To deliver on our strategy, we need to have the best talent. We have focused on strengthening our people and culture, following a pioneering “Sustainable Coworkership” program. In a world of rapid change, we need to make the right decisions and learn quickly from our mistakes. We believe that having a diverse culture that encourages debate and positively challenges the best solutions and business opportunities is better than a pure command-and-control structure.

2021 was a strong year with solid performance across the group. We saw a strengthening of our core Open Hatch market through our Joint Venture, G2 Ocean. We successfully reorganised Grieg Green to account for changing market conditions. Grieg Star provided world-class Ship Management services, bringing several vessels back under internal management.

 

Grieg Edge successfully signed multiple new business contracts and has been awarded green funding. Our Ship Owning team timed the exit of our conventional bulk investments to deliver profit. With excellent support from our corporate team & IT, we have modernised and digitalised several critical lines of business applications. We are making great strides towards being a truly data-driven business.

This performance is also reflected in our financial results. Grieg Maritime Group’s operating profit increased to USD 53.7m in 2021, with a profit after tax of USD 38.0m. This is our strongest performance for many years, and we use the opportunity to strengthen our foundations, providing a solid platform for future growth. 

Despite a commendable performance, there remained plenty of unpredictability and surprises in 2021. We continue to face Covid related challenges on our ships and are grateful that the vast majority of the crew are now fully vaccinated. Crew changes remain expensive, complex and tiring for our loyal sailors. We face offhire situations in port operations and when waiting for Dry Docking.

The general availability and costs of spare parts push our OPEX upwards. At every step of the way, our team work hard to find the best possible and most effective solutions.

Typhoon Rai hit the Philippines at the tail end of the year and caused significant harm to people and their homes. Our employees and the business have provided direct support to the communities affected. A special fund has been utilised to provide extra support to our crew and their families.

In this background and continuing challenges from the pandemic, we thank the professional dedication of our employees, partners, board and owners.

Together, we have led Grieg Maritime Group back into profitability and provided an exciting opportunity for further delivering on our strategy in 2022: Build new sustainable business, ensure world-class operations, take a leading role in the maritime green shift, and implement clear ownership strategies.

Together, those four pillars support our end goal: To create maritime solutions for a better future.