Lauritzen Bulkers' annual report published for 2021
Financial report for 2021
An exceptional year
“2021 was an exceptional and unpredictable year, where we nevertheless succeeded in generating a net result of USDm 103, the best result for J. Lauritzen’s dry cargo activities since 2010. We further refined our knowledge-based business model and continued our transition towards becoming a short-term trader and operator, primarily in the handysize bulk carrier segment” says CEO Niels Josefsen, adding “that we are prepared to grow our activities in the coming years and also make vessel investments when the timing is right”.
Main initiatives and events
- Our strategic transition journey continued in 2021 with increased focus on active portfolio management and we expanded our use of FFAs as a risk mitigating tool.
- The performance of our Short-Term Book (commitments up to four month) again demonstrated the strength of our operator and client focused business model.
- Towards the end of the year, we decided to split our long-term portfolio (commitment between four months and two years) into two separate books: Long-Term Book and Asset Management Book with effect from 1 January 2022.
- In addition to handling our wholly owned and part-owned fleet, the Asset Management Book will enable a stronger focus on the management of options embedded in the long-term chartered fleet, new long-term charters, sales and purchase opportunities etc.
- Opening of a branch office in Hong Kong enabling us to offer our services to even more clients in Southeast Asia.
- As a responsible shipowner and operator, we support the need to raise ambitions and commit to fully decarbonise the shipping industry by 2050. On that background we became a signatory to the Call for Action for Shipping Decarbonisation, which was delivered to the COP26 Presidency in Glasgow in October 2021.
- We continued our focus on gender diversity, and the female share of employees reached 40% at year-end 2021 (35% at year-end 2020).
Outlook for 2022
Dry cargo markets are expected to remain strong in 2022, albeit at a more subdued level than in 2021. Continued Covid-19 implications, geopolitical tensions and inflation are main risk factors. However, we expect a good positive net result in 2022, based on our committed business for the year. The net result is only to a certain extent sensitive to changes in the dry bulk market rates as approximately 70% of our expected activity in 2022 is currently covered.