Svitzer results impacted by struggling salvage market
Svitzer has delivered an underlying profit of US$23 million for Q2 2016, a US$7 million drop on the same period last year.
In challenging shipping and salvage markets, the first half of 2016 brought in US$49 million, compared to $59 million in the first half of 2015. The salvage activities in particular remain under pressure with low activity due to a weak salvage market, said Svitzer.
Svitzer explained that on top of the troubled salvage and shipping markets, the start-up costs of new operations, including a newbuilding program, have reduced the company’s return on investment.
“We are operating in very challenging shipping, salvage and offshore markets,” said CEO Robert Uggla. “In this environment, I am encouraged to see that we enjoy strong customer support coupled with satisfactory returns.
“Equally important, we are about to implement several long-term contracts in terminal towage, which will provide important future growth and income.”