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May 28, 2015

Change of market

Negative development in the price of oil and the economy measures of the oil companies have put the brakes on the offshore market, leading to low day rates and practically a stop in the ordering of new offshore vessels. This means that both others and we in Maritime Partner must look for other market opportunities. In terms of the global economy lower energy pric- es mean that consumers have more money to play with, something which, hopefully, will increase trade between countries and so stimulate shipping. Despite the fact that there will be fewer assignments for the offshore branch, we expect to increase our sales in the next few years. One of the reasons is growth in the defence and SAR (search and rescue) market. In 2014 this market accounted for half of Maritime Partner’s turnover.


Our turnover increased from NOK 285 million in 2013 to around NOK 310 million in 2014. Outside the offshore market which continues to be the biggest, much of the new turnover is from the defence and SAR market. Profits before tax increased from NOK 6.6 million to about NOK 14 million. 

We have an order book of about NOK 300 million. Boats for the offshore market represent a large part of the orderbook, but we expect to receive fewer orders from the oil industry in both 2016 and 2017. Orders from the defence market, combined with boats for the coastguard, SAR (search and rescue) and also more orders for specialised workboats, mean that even so we are budgeting for growth in turnover both in 2015 and 2016.

Cost pressures and lower oil prices slow the offshore market while political turmoil over much of the world contributes to increased attention to preparedness and defence. However, changes in the market do not lead us into unknown waters. In an international market where there are always new customers to be found, we are well positioned in the military, coastguard, SAR (search and rescue), pilotage, police, fire and harbour service areas, with an unmatched range comprising both large and small boats. We have delivered 110 larger enclosed boats to Norwegian and international customers, and if we include smaller open boats for tough standby tasks, we have supplied more than 200 boats to the defence market.

A comprehensive contract with the Danish Defence Acquisition and Logistics Organization, and not least a renewed general agreement with the Norwegian Defence Logistics Organisation, contributed to the anniversary year of 2014 being a good year for Maritime Partner. Among the biggest deliveries of the last two years is a prestigious contract which we signed with the Algerian Defence Department in the autumn of 2012. The contract is the biggest in the company’s history to date and covers the supply of altogether twelve rescue and patrol boats of the Alusafe 2000 type together with training of some forty people. Up to now five boats have been delivered and the hulls for the next two are under construction.

These segments have a smaller volume than offshore, but represent a more stable market. Individually the biggest boats naturally provide a higher turnover; the challenges for us as a supplier are relatively long timescales and also in finding the opening to make a sale. For this reason we take a long view and we are always occupied with identifying future projects.

This year we deliver our boat number 2000. This symbolically important boat will go to Kleven and the end customer Maersk, two extremely important customers for us. Continued hard work is the most important ingredient in securing our positive development in the future. No-one can foresee the future, but we can do our best to try to influence it positively. The reputation we have built up through the years, and the work our sixty diligent employees do every day to satisfy customers, are the foundation on which we will build success also in the coming years.