Announcing its results for the 2013 financial year, Viking Life-Saving Equipment A/S has again led the way in its industry, achieving growth in both turnover and profits for 10 straight years. 

In doing so, the Danish-based company with a worldwide presence has once more beaten the odds in an industry plagued by reductions in passenger and cargo ship newbuilds, falling exchange rates in key markets, and downward price pressure. 

Adjusted for falls in the US dollar exchange rate, currencies pegged to the dollar, and European member state non-euro currencies, the company’s turnover for 2013 increased 6 percent to DKK 1.612 billion. Profit before tax grew more than 20 percent to a record DKK 141.2 million. “Our earnings have now reached an appropriate level for a healthy manufacturing company,” says Viking CEO Henrik Uhd Christensen. “In 2013, Viking achieved moderate growth in turnover, and the increased profit level primarily reflects internal improvements. We have, in fact, been able to reduce the costs of administration, logistics and production while simultaneously strengthening customer service.” 

Long-term strategy in a sluggish market 

As one of the world’s leading manufacturers of maritime safety equipment, Viking is closely tied to the newbuild market for passenger and cargo ships, a market that has been declining in recent years. Southern European countries, in particular, the traditional stronghold of ferry traffic in the Mediterranean, are still feeling the effects of the economic crisis. Moreover, low economic growth rates in several large markets have had considerable influence on global cargo traffic which, in turn, affects contracts for new cargo ships. 

“We have been able to handle the worldwide market saturation of recent years because Viking’s owners take a long-term approach to expanding our global market position, focusing on growth and making sure we are right where our customers are,” says Henrik Uhd Christensen. “During the crisis years, we have continued to develop a competitive product portfolio based on concepts and services tailored to each customer’s specific needs.” 

Offshore market continues to grow 

Henrik Uhd Christensen points to the Viking Shipowner Agreement, where his company offers to take care of all aspects of a shipowner’s safety equipment and servicing tasks for predictable, transparent prices. It’s a concept that addresses shipowner needs for flexibility at a time where access to financing is limited, and has quickly become the industry’s gold standard since its launch  four years ago. 

With its broad product portfolio, Viking has also been able to compensate for slower activity in some market segments by expanding in more promising ones. Here the offshore industry stands out, with growth rates fueled by continued high oil prices. 

As a result of the on-going farm-out process and after obtaining the necessary approval from Brazilian authorities, BP Energy do Brasil Ltda will join as a concessionaire and the interests of the consortium members in BM-POT-17 will be as follows: Petrobras - 40% (operator), BP Energy do Brasil Ltda - 40% and Petrogal Brasil S.A - 20%.