Svitzer reports 2023 revenue growth of 6% and EBITDA margin of 29% ahead of intended listing

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Global towage and marine services specialist Svitzer has published its 2023 annual report, highlighting another year of solid financial performance. Total revenue grew 6% to DKK 5,786 million driven by – among other factors – a record number of harbour towage tug jobs of more than 150,000 in total. Adjusted for foreign exchange impact, total revenue grew 9.5%.

Operating profit (EBITDA) was up 4% to DKK 1,690 million, corresponding to an EBITDA margin of 29.2%.

In the past five years, total revenue has on average grown by almost 6% annually with an average EBITDA margin of 30%. The development has been supported by a resilient underlying market showing consistent long-term growth, driven by larger vessels and increased global trade, which has led to an increase in tug activity.

Svitzer CEO, Kasper Nilaus, said: “2023 was yet another year of solid performance for Svitzer. We kept a steady course and delivered mission-critical, safe, and reliable towage and marine services to our 2,000 customers worldwide. During the year, we secured a number of significant commercial contracts and started up operations on several key projects, reaffirming our global leadership position.”

Svitzer expects to continue its stable growth journey in 2024, targeting revenue growth of 3.5-5.0% on a constant exchange rates basis, and EBITDA of DKK 1,700-1,800 million, excluding transaction costs related to the demerger.

Svitzer is committed to leading the green transition in the marine services industry, aiming for carbon-neutral operations by 2040. In 2023, the company made significant progress, achieving a 24% reduction in CO2 intensity compared to 2020.

Svitzer, founded in 1833, has been part of A.P. Møller – Mærsk A/S (APMM) for the past almost 45 years. On 8 February 2024, APMM announced its decision to initiate a separation of Svitzer through a demerger, subject to approval at an APMM extraordinary general meeting expected to be held on 26 April 2024, with a subsequent listing of the new parent company, Svitzer Group A/S, on Nasdaq Copenhagen and an anticipated first day of trading on 30 April 2024.

Kasper Nilaus added: “As part of A.P. Møller – Mærsk A/S, we have grown to become a leader in the global towage and marine services industry. A separate listing gives us the opportunity to further strengthen our market position and the Svitzer brand, which we have carried for more than 190 years.

“Operating in a growing towage market, we have an attractive financial profile with solid margins and a predictable cash flow. We are organisationally, financially, and operationally ready for a future as a stand-alone listed company.”

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