Clipper Bids Farewell to Tanker Market

  • Business & Finance

The Clipper Group Ltd has exited the tanker market with the sale of the last three chemical tanker vessels of Clipper Group A/S, Danish subsidiary of Clipper Group. 

Clipper Group A/S specializes in ferry services in Denmark (Danske Færger), ro-ro activities on the Irish Sea (Seatruck Ferries), commercial and technical management (Clipper Fleet Management), and ownership and operation of chemical tankers.

The three vessels are the 2005-build Clipper Legacy, 2008-built Clipper Bourgogne and 200-built Clipper Burgundy that were sold in April/May 2015 respectively.

“We do not wish to be present in segments where we are only passive tonnage providers, which is why we have decided to exit the tanker segment,” Flemming Steen, CFO of Clipper Group explains.

“With continuously strong results in Danske Færger and Seatruck we have two important complementary business segments, balancing our more volatile core business – the dry bulk segment.”

Clipper Group A/S turned the deficit of recent years into a positive result for 2014 posting a net result of 6 million USD.

The company recorded a net revenue of USD 269 million, lower than 2013, while an equity ratio of 38% is a further strengthening compared to 2013.

Speaking of Clipper Group Ltd., Steen said that thier dry bulk business has been challenged by the very weak bulk markets throughout most of 2014.

“Uncertainty on the demand side in key markets – along with a supply side where fleet growth is expected to be higher than in 2014 – indicates that rates will continue to be under pressure in 2015. This notwithstanding, Clipper has a competitive fleet cost and a balanced business model with a number of cargo-based subsidiary businesses such as Clipper Steel Services. In addition, we have continued to successfully expand our pool management business recently, which further serves to strengthen our global position as a market leader,” he added.

“Overall, and taking the above into account along with the complementary businesses of ferries and ro-ro, Clipper stands robust and ready to face continued challenging markets in 2015,” Steen concludes.

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