After a dip in revenue and earnings in the first year of the Covid-19 pandemic, Viking Life-Saving Equipment is back in great shape and delivering a record result in 2021.
Net revenue was DKK 2.7 billion, slightly below the record year of 2019, but the result before tax, DKK 277 million, clearly trumps the earnings of DKK 205 million in the same year. The group's result for 2021 is significantly above expectations, driven by an unexpectedly strong second half.
- Our bottom line is at a historically high level, and this is driven by two factors. Overall, we have had good product sales, but in the service area there has been growth in all service areas, where both traditional and purchased services have had a high level of activity. The second reason is cost savings, which we cannot expect to fully maintain in 2022, as there will be a backlog in terms of travel and participation in trade fairs and exhibitions all over the world, says CEO Henrik Uhd Christensen.
The Viking boss describes the development in the company's three main segments, cargo ships, passenger ships and offshore, as asynchronous, as there are both conditions that negatively affect the market and trends whose effect is the opposite. An example is the hard-hit cruise industry, which continues to be characterized by struggling shipping companies and abandoned ships, but also by an ambition to have the fleet ready for when times improve. This has resulted in high service activity at Viking.
- Within the cargo area, there is high activity in everything that can carry a container, whereas tankers have had a tough year. The offshore industry is benefiting from a high oil price, but the major growth engine, exploration activities, is far from the same extent as before. The large fluctuations within the individual market segments affect our business differently, but predominantly in a positive direction, says Henrik Uhd Christensen.
The management of Viking expects that the group will achieve a similarly high level of activity in 2022 and a result in line with the record in the past financial year. The expectations are associated with greater uncertainty than usual due to the geopolitical unrest in the world.
amp
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
