Viking slowdown

Denmark-headquartered Viking Life-Saving Equipment A/S is experiencing a moderate slowdown following several years of continuous growth.

In a market affected by continued decline in two important segments; cargo vessels and offshore, revenue for 2016 totaled DKK 1.858 billion, compared to DKK 1.891 billion in 2015. Profit before tax for the financial year totaled DKK 183.5 million, compared to DKK 200.5 million in 2015.

“We want to continue developing and delivering growth in terms of both revenue and earnings. In the current market situation, we are performing well compared to our peers, while maintaining – and in most segments increasing – our market share. We also continued to invest in and develop our business with new products and concepts in 2016, and we established positions in the strategically important markets of Korea and Thailand. We will continue this offensive approach to the market, ensuring that we can seize the growth that is expected to return in 2018,” said Viking CEO Henrik Uhd Christensen.

Viking has launched a number of successful concepts in recent years for shipowners and offshore rig owners, which are adapted to the difficult market conditions. Customers are seeking multi-year agreements with transparent pricing on safety equipment and service, combined with reduced administrative burdens. The efforts to meet these needs will continue in the coming years.

On a positive note, the holiday-driven cruise industry has remained successful for decades and proven less dependent on the global economy. The part of the passenger ship market that transports both passengers and cargo has also benefited from growth and lower oil prices. This has had a positive impact on both newbuilds and the existing tonnage.

In 2015, VIKING acquired the Danish manufacturer of a game-changing technology for handling lifeboats, Nadiro A/S. The market has warmly embraced the Drop-in-Ball™ system, and VIKING Nadiro has achieved high growth rates and excellent earnings in a market driven by new SOLAS rules that will take effect in 2019.

Viking’s equity at the end of 2016 totalled DKK 922.9 million.