• 2020 February 14 12:26

    Supervisory board of KN approves company's corporate strategy until 2030

    The supervisory board of KN, the oil and LNG terminal operator, has approved the company's corporate strategy until 2030, KN says in a press release. The main directions defined in the strategy are international LNG projects, strengthened competitiveness of oil terminals and development of Klaipėda as an LNG hub in the Baltic region. The slogan of the strategy of KN is “bridging energy markets”.
     
    The company is meeting the new decade with a renewed business vision that sets an ambitious goal for KN to become the leading operator of floating LNG terminals in the world and the most competitive owner of a centre of oil and refined services handling hub in the Baltic region up to 2030.
     
    “In response to the increasingly accelerating transformation of energy sector worldwide and the intensifying competitive environment of KN operations, we have clarified, together with the company Board and Supervisory board, the strategy of KN for the coming decade. In the new strategy, in addition to competitive advantage, further development or operational efficiency, we have focused on long-term environmental and social sustainability, nurturing of the safety culture. We believe that the company has every opportunity to establish itself as a multinational company and has the necessary competencies to expand the range of services it provides in both LNG and oil terminal operations and can secure sustainable revenue from different operating segments in the long term. We send a strong message to partners, investors, competitors and the market: KN is strengthening its image as a vibrant, innovative and competitive company, boldly looking at global market changes, where it sees opportunities for growth, improvement and increase in value creation as well as value of the company", says Darius Šilenskis, KN CEO. 
     
    In the international LNG project market, KN will aim to be the first choice for customers developing LNG terminals worldwide, and to become one of the three leading companies in the segment of floating LNG terminals. At the end of the period, the share of the annual net profit generated from international LNG projects is expected to exceed the annual net profit generated from oil terminal operations.
     
    Through its partner network and accumulated competencies, the Company will participate in the global LNG market both as an operator and by investing in floating LNG terminals. KN strategy states that the company plans to invest up to EUR 140 million of equity in international LNG projects by 2030 and to become a shareholder of at least 4 LNG terminals.
     
    “KN aims to enter the early stages of LNG terminal project development and create long-term value for shareholders through its experience in developing and managing the floating LNG import terminals. Recently, there has been an increasing trend in the world to attract external investors and potential operators with relevant experience in projects for development of terminals. KN has gained many competitive advantages in this field, which have been accumulated through successful operation of one of the first LNG terminals of this kind in the world and through implementation of many innovations of this industry. Our experience with the world's largest energy players, innovative experience and impeccable reputation allow us to hope for success in achieving sufficiently ambitious strategic goals for the international expansion of the LNG segment,” says Darius Šilenskis, KN CEO. 
     
    The strategic goal of Klaipėda LNG Terminal remains to ensure the access of Lithuania and the Baltic Sea region to the international LNG market. One of the most significant steps of this decade is the acquisition of a ship-storage facility and the implementation of operation of the LNG terminal after 2024. 
     
    “The world is talking about diversifying its energy resources and setting ambitious goals in the context of climate change. The EU has decided that natural gas is a viable alternative to the transition to green energy in the long term. We believe that reliable and competitive access to the global natural gas market is particularly crucial in seeking sustainable diversification of energy sources in the nearest future. With connections to Finland and Poland (2021), we are also ready to offer LNG reloading services to potential customers throughout the region. We will aim that the use of the LNG infrastructure is one of the most intensive ones in Europe, whereas the conditions created for commercial customers are sufficiently competitive, choosing us as the most cost-effective alternative,” says Darius Šilenskis, KN CEO.
     
    At the same time, efforts will be made to develop commercial activities, thus increasing the value created by the LNG terminal for the company's shareholders and gas consumers in Lithuania. The development of small-scale LNG market has especially great potential, seeking to expand access for heavy transport to use the LNG fuel, and expanding ship bunkering by means of the LNG fuel in Klaipėda. To this end KN will seek strategic partnerships with the most active participants of the market, and one of such partnerships is established long-term cooperation with the Polish group “PGNiG”, which is to commence in April 2020.
     
    By 2030 the KN managed oil terminals will seek to ensure transhipment or storage of the full range of products manufactured in the nearest refineries and directed to export markets.  The strategic goal is to fully meet the evolving customer demand for the quality and the diversity of the service, thereby creating added value for both the customers and the shareholders of KN. 
     
    Due to the increasing competitiveness and the expected change in the demand for petroleum products in the long term, it is essential to implement the investment programme that has been launched, thus widening the range of handled products and services offered. KN will seek to expand the services of its terminals by including not only traditional petroleum products in their operation but also various petrochemicals, biofuels, and refining feedstock. The expansion of capacity will also seek to ensure that more customers can be served simultaneously at our oil terminals.
     
    “We will seek to change the established perception that we are an ordinary oil terminal. Our aim is to be the first and best choice for our customers, we are striving to become an innovative service hub capable of fully meeting their needs, loading any export or import products, using any kind of loading scheme, from any kind of transport to any other kind of transport. We will continue to invest in our technologies, not only to be more efficient, but also to ensure the highest possible level of control and prevention of pollution generated by terminal operations, as well as efficiency of processes. We believe that the chosen strategy will help to maintain the current level of profitability of these activities in the long term,”- says D. Šilenskis.
     
    The company expects its net annual profit to grow to EUR 35 million by 2030, once the strategy is successfully implemented. The company has planned investments amounting up to EUR 320-380 million in infrastructure development, modernisation and international LNG projects. The target return on equity for the company in 2030 will approximate 13 percent.
     
    “At present, the company earns most of its profits from oil terminal operations. Given the geopolitical context, as well as the global concerns about climate change and the resulting transformations in the global energy mix, the activities of KN must inevitably change. The main strategic goal is to have three equivalent areas of business in the 2030s that contribute to the creation of the return to shareholders,” says D. Šilenskis.
     
    According to the KN CEO, abilities of KN team to adapt will be very important for the implementation of the strategy. Company seeks, that its employers are open minded, prepared for the changes, fast-learning professionals. From the perspective of ambitious goals of international development, teams will be spread across the globe have to be flexible, innovative, multilingual and multicultural.




2020 February 17

18:37 CMA CGM announces FAK rates from Middle East Gulf & Pakistan to North Europe, the Mediterranean and Red Sea & Red Sea
18:06 European Shipping Week 2020 opens with the latest figures on European shipping
17:50 Gazprom Neft’s supplies of low-sulphur marine fuel to domestic market to exceed 1.5 million tonnes in 2020
17:36 SCHOTTEL secures contract to provide propulsion units for a newly built harbour tug
17:18 BlueWater Reporting issues ISC-North America trade report
17:05 Saga Subsea receives new contract
16:30 IMO’s Sub-Committee on Pollution Prevention and Response meets this week
16:05 Reach Subsea awarded several contracts and call-offs under frame agreements for 2020 execution
15:54 Wärtsilä to supply customized Hybrid Scrubber solution to two Norwegian Cruise Line ships
15:06 Sea Port of Saint-Petersburg's allocations under its social programme totaled RUB 47 million in 2019
14:42 Container throughput of Hong Kong port (China) fell by 20.4% to 1.35 million TEUs in Jan’2020
14:17 Damen holds keel-laying ceremony for Nigerian Navy landing craft
13:38 WFW advices BPER BANCA on Marittima Emiliana financing
13:35 RusHydro and Kemerovo Region Government sign cooperation agreement to complete construction of Krapivinskiy hydroelectric complex
12:09 CMA CGM announces implementation of Panama Canal Adjustment Factor
11:05 Sea Port of Saint-Petersburg took part in Kirovsky District exhibition
10:31 Bunker sales at the port of Singapore in Jan’2020 grew by 7.5% Y-o-Y to 4.51 million tonnes
10:17 Diana Shipping Inc. announces cancellation of the sale of a panamax dry bulk vessel, the M/V Calipso
10:03 MABUX: Bunker market this morning, Feb 17
09:50 Port of Singapore throughput in Jan’2020 declined by 2.1% to 50.88 million tonnes
09:36 Brent Crude futures price is down 0.28% to $57.16, Light Sweet Crude – down 0.1% to $52.27
09:34 CMA CGM announces FAK rates from India and Sri Lanka to North Europe and the Mediterranean
09:19 Fincantieri delivers “Scarlet Lady”, the first Virgin Voyages ship
09:18 Baltic Dry Index is up to 425 points
09:04 Works starts on new Rolls-Royce Peterborough facility to support the Canadian surface combatant program
07:15 IAA PortNews congratulates Vyacheslav Ruksha, Deputy Director of Rosatom - Director of Rosatom’s NSR Directorate, on his birthday!

2020 February 16

16:15 Two new oceanographic vessels will join the NOAA fleet
15:13 TenneT develops first 2GW offshore grid connection with suppliers
14:52 USCG issues Captain of the Port Orders to Bouchard Transportation Vessels
13:12 Siemens builds Germany’s largest “power outlet” for ships for Port of Kiel
12:34 Naval Group presents its industrial and academic cooperation plan with Greece
11:16 MARAD announces more than $280 million in grants for US coastal seaports

2020 February 15

14:51 Holland Shipyards holds keel-laying ceremony for new electric ferry
13:27 USCG takes delivery of Cutter Edgar Culbertson
12:43 Virgin Voyages celebrates delivery of Scarlet Lady
11:15 European Commission working visit in the context of Military Mobility

2020 February 14

18:37 OOCL updates Trans-Pacific services
18:07 Canada plans to support ban on heavy fuel oil in Arctic shipping
17:49 Rates of transport security dues approved for Rosmorport’s Azov-Black Sea Basin
17:26 Reconstruction of the historic FG levee completed at the Port of Riga
17:05 Vado Gateway terminal commences operations
16:51 Commissioning ceremony of Offshore Patrol Vessel PNS YARMOOK
16:35 PIL to exit Transpacific market to focus on North-South trade
16:08 Keel of Wasaline’s new ferry was laid at Rauma shipyard
15:44 Rauma Marine Constructions to partner with Aalto University looking to cut emissions and increase safety in seafaring
15:19 Nauticor, Fassmer start LNG cooperation with Atair bunkering
14:21 Global Ports launches Ust-Luga – Moscow rail container service
13:57 Zvezda shipyard starts building yet another Aframax tanker for Rosnefteflot
13:35 Port of Ipswich celebrates tonnage-handling record for largest independent producer of sand and gravel in the UK
13:12 Finnlines invests in highest passenger comfort and orders two eco-friendly Superstar vessels
12:50 Finnlines strengthens its North Sea services as from week 8, 2020
12:26 Supervisory board of KN approves company's corporate strategy until 2030
12:03 Hapag-Lloyd announces rates from Mediterranean to Far East
11:48 Throughput of Klaipėda Port in Jan'20 exceeds that of Latvia’s ports for the first time in the history
11:30 CMA CGM announces FAK rates for reefers from North Europe, Baltic, Scandinavia, Poland & West Med to Asia
11:09 Fincantieri presents “Scarlet Lady” in Genoa Sestri Ponente
10:54 Klaipėda Port’s canal to be deepened to 15 meters
10:30 CMA CGM announces FAK rates for reefers from East Med & Black Sea to Asia
10:27 MABUX: Bunker market this morning, Feb 14
10:09 PCC Intermodal marks 10 years of work in the Port of Hamburg