Wagenborg sees net profit decline sharply

Groningen shipping company Royal Wagenborg saw its net profit decrease by €84 million to €157.5 million last year. The operating result fell by 10 per cent and amounted to €270.5 million. This is evident from the 2023 annual report of the largest shipping group in the Netherlands.

In 2022, the 125-year-old family business from Delfzijl managed to rake in almost a quarter of a billion euros in dry bulk business, an increase of no less than 150 per cent compared to 2021. The fact that a sharp decrease (-34 per cent) was recorded in the net result in 2023 is attributed by the management to a gradual decline in freight rates in the course of 2023, while those prices were at a ‘high level’ in 2022.

Meanwhile, Wagenborg’s turnover decreased by 5 per cent due to price pressure and amounted to €909.4 million (2022: €959 million), according to the annual report. The shipping company finds it difficult to predict for next year. Various uncertainties contribute to this for Wagenborg. These are macroeconomic developments but also conflicts in the region. The shipping company no longer sails through the Suez Canal but opts for the route around the Cape of Good Hope. This costs the company 10-15% extra sailing days and has the same negative impact on income, the shipping company describes. On the other hand, it does have a positive effect on freight rates. All in all, Wagenborg expects a solid, but slightly lower, result in 2024.

More owned vessels

Royal Wagenborg continued to invest in strengthening its own cargo fleet last year. For example, 17 ships were acquired, with 31 in 2022. The own fleet consisted of 124 own ships at the end of last year, the management reports. In total, Wagenborg manages a fleet of 174 ships.

In addition to the ships that Wagenborg has acquired, the shipping company is also launching new ships. In 2023, construction of the Amalia, the third ship in the Easy Max series, was completed. That ship entered service in early 2024. Construction of the fourth Easy Max, Alexia, also began in the spring of 2023. This ship has also been christened and is now in service. Construction of the fifth Easy Max began this year. The innovative EasyMax ships are the largest that can be built on the inside of the dike in Delfzijl. The ship, which has no tweendeck, has two holds and is equipped with ice class 1A, has an overall length of 149.95 metres, a width of 15.90 metres, a depth of 12.20 metres and a maximum draught of 8.60 metres. A 2999 kW Wärtsilä 6L32 main engine will be installed in the engine room. The loading capacity of the 8849 gt/4475 nt measuring vessel is 14,300 tons (open top 11,000 tons) and the hold capacity is 628,000 cft.

This article was originally published on NT.nl