USTC Delivers Near Record Profit

With profit before tax of DKK 480 million, Middelfart-based Selfinvest, which includes the global Group A/S United Shipping & Trading Company (USTC), is yet again filing an impressive set of financial statements. This was generated via record results in several of USTC’s subsidiaries, with the Group thus cementing its position of strength in the global market.

CEO and sole owner Torben Østergaard-Nielsen says: “It is characteristic of the financial year just concluded that we are continuing to see the fruits of the investments and acquisitions we have undertaken as part of the USTC Group’s growth strategy. Within our three primary divisions, Uni-Tankers has delivered its best-ever results; Shipping.dk produced another positive result, and despite low oil prices and increased competition, Bunker Holding managed to retain and consolidate its market position as one of the leading global bunkering companies.

“Profit for the year reflects the dedicated efforts of all the companies in the USTC Group, with optimum navigation in extremely dynamic and challenging markets. At the same time, thanks to new initiatives and adaptation of our strategies and organisations, we have managed to optimise and create maximum value,” Torben Østergaard-Nielsen emphasises.

Bunker Holding still represents the majority of turnover and revenue for USTC, and during the past financial year it has entered into a long-term loan agreement with eight Danish and international banks. The loan facilities are to the value of USD 1.0 billion, thus securing particularly sound financing for Bunker Holding.

“The agreement is very satisfactory and an expression of the soundness and robustness that characterises Bunker Holding. It will also make it possible for Bunker Holding to continue to pursue its ambitious growth strategy and consolidate its market position,” Torben Østergaard-Nielsen explains.

Global Risk Management is another Group company that has delivered its best-ever profit in a very competitive market. A leading supplier of customised fixed price fuel agreements, this company works primarily with shipping customers, but airline companies, oil suppliers and industry also benefit significantly from Global Risk Management’s advice.

During the year, Global Risk Management focused strongly on expanding its customer base, strengthening the organisation and enhancing the efficiency of the business. In addition, there was ongoing compliance work in relation to Danish FSA regulations in preparation for MiFID II, scheduled to take effect on 2 January 2018.

The USTC Group’s IT company Outforce delivered yet another magnificent result. Profit was slightly lower than last year, however, due primarily to the stronger focus on hosting and IT services as a counterbalance to the company’s hardware sales.

The Rechnitzer advertising agency, also based in Middelfart, finished the financial year with a loss. As a consequence of elusive profit, a new CEO was installed during the financial year, and a new strategy for the agency was put in place at the same time.

At the end of the financial year, the USTC Group employed a staff of 1,490.

Activities in the parent company, Selfinvest, also picked up speed during the year, with the establishment and building of Selfinvest Family Office, along with the appointment of a CEO. Selfinvest Family Office manages Selfinvest’s various types of investment assets, and during the year the investment strategy was modified and expanded, becoming far more transparent and specialised.

Agreements were signed with the most capable Danish fund managers for the respective asset classes, and a reporting solution was also established to facilitate ongoing monitoring and evaluation of investments. Despite a significant negative return in the global equity markets during the financial year, the change in investment strategy contributed to a positive investment result for the year.

Selfinvest Family Office has a long-term investment strategy. Going forward, the focus will be on establishing partnerships with selected international fund managers and increasing exposure to alternative investments.