Celebrating an outstanding first year of KPI OceanConnect
One year ago, we successfully formed KPI OceanConnect from the merger between KPI Bridge Oil and OceanConnect Marine, to form a new brand with clear synergies and increased capabilities.
The merger was the first of its kind in the post-IMO 2020 era, and it created one of the largest and most experienced providers of marine fuels, lubricants, and expert advice in the shipping world.
We have a strong team of professionals operating from 15 locations globally, covering every major maritime hub and time zone. Through our continued focus on partnership and innovation over the years, our people have gained a reputation for transparency, decency and quality service in the industry.
A year of transformation
Using our collective expertise and partnership approach, we recently helped our customers and partners successfully navigate the arrival of IMO 2020, increased credit risks, and Covid-19. Our performance over the past year is a credit to every single one of my colleagues.
In June, we reported a strong financial year and increased volumes by 26.5% compared to the same period last year. We also reported earnings before tax of $15.1 million in the 2020/21 financial year, which factors in merger costs and the effects of Covid-19. Our organisation benefits from having robust financial strength even in the toughest markets, and our economies of scale enable a seamless service on a global basis. Indeed, our commitment to providing unique solutions to every client has brought us several major new business partnerships this year.
In today’s market, there’s a strong demand for a consultative approach to fuel procurement. However, time and time again this year I’ve spoken with prospective customers who are still receiving a commoditised service that’s bringing them very little value. Now more than ever, they’re recognising the need to work with a fuels services provider that has the experience, independence and integrity to provide the right solutions to meet their current and future needs.
For 50 years, we’ve been known for our partnership-based approach. Keeping focus on building long-term relationships, being agile and responsive to our partners’ requirements have been the conerstones of our success and growth into one of the world’s leading fuel services providers. Cutting corners does not pay off in the long run and especially so when major market transitions happen. Instead, it takes clear values, a well articulated purpose, and transparent corporate culture to lead shipping’s energy transition.
I believe that this ethos is one of the main reasons why the merger has been so successful. We were two companies that believed in the importance of strong, durable partnerships, and it’s this melding of organisations with similar values and cultures that has helped us to flourish. The synergies created by the merger has also significantly strengthened our position as a trusted player in shipping’s transition to low-carbon marine energy, and we’re committed to providing innovative solutions to reduce the industry’s impact on the planet.
Driving decarbonisation with transparency at the forefront
The shipping world’s decarbonisation targets are set for 2030 and 2050, and as such we look ahead to plan for this journey with ‘sustainability’ and ‘transparency’ as our watchwords. There’s no single pathway to shipping’s decarbonisation journey, but asking the right questions and having the right partner will help you to evolve in line with these market transformations.
I firmly believe that companies like ours have a responsibility in these transitory periods, and we’re working with several partners to ensure that our counterparts are always able to find the right fuels in the right locations for their ships at all times in the coming decades. We’re committed to decarbonisation and creating a more sustainable future for our industry, and the world.
As a first step on this pathway, we recently completed our first carbon-neutral fuel supply with a long-term client in the seismic research sector. And in July 2021, we launched an Alternative Fuels and Special Projects division to enhance our customers’ ability to achieve their sustainability ambitions. These developments, although a major investment, are entirely necessary for the durability of our business and our commitment to our long-term partnership approach. Most importantly, we’re creating real value for our clients, while fuelling shipping’s decarbonisation journey.
There will be much more to come from KPI OceanConnect in the next few years as we work together to unlock shipping’s green future. I look forward to sharing that journey with you.
CEO, Søren Høll