• 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 March 28

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2020 March 27

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15:44 The world's most powerful semi-submersible crane vessel receives the largest LNG bunkering in the Port of Rotterdam
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2020 March 26

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2020 March 25

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