• 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 21

18:12 Digitization of KN: paper is no longer used in the operation of Klaipėda LNG terminal
17:48 NIBULON Shipyard is about to launch second non-self-propelled open type vessel
17:17 CMA CGM announces Emergency Space Surcharge from North Europe, Scandinavia & Poland to West Med, East Med, Adriatic & North Africa
16:59 New roll trailers put into operation at Bronka port
16:04 AS Tallink Grupp’s wholly-owned subsidiary AS Hansatee Cargo merged with Group’s wholly-owned subsidiary AS Tallink
15:25 Russia's Main Department of State Expertise approved adjusted design documentation under Nord Stream 2 project
15:02 OCEAN Industries orders MAN Propulsion Packages for Royal Canadian Navy tugs
14:13 Diana Shipping announces time charter contract for m/v Coronis with Koch and cancellation of the sale of a Capesize dry bulk vessel
13:01 COSCO SHIPPING Lines provides water and rail transport services
12:40 Wärtsilä LPG Fuel Supply System the first ever to undergo engine testing
12:12 ABS to class world’s largest B-Tank VLECs by Jiangnan
11:30 Coronavirus disease 2019 – IMO urges no unnecessary delays to ships
11:09 World’s first LPG-retrofit order exercises option for four additional engines
10:44 MABUX: Bunker market this morning, Feb 21
10:43 Biofouling demands collective, urgent and ‘proactive’ approach, stresses Bellona
10:09 Cod farming set for rebound as savvy investors rush to back Norcod
09:55 Bunker prices are slightly down at the port of Saint-Petersburg, Russia
09:43 GTT acquires Icelandic company Marorka, an expert in Smart Shipping
09:35 BlueWater Reporting closely monitoring blanked sailings amid coronavirus outbreak
09:34 Brent Crude futures price is down 0.73% to $58.88, Light Sweet Crude – down 0.61% to $53.55
09:16 Baltic Dry Index is up to 480 points

2020 February 20

18:27 SMOOTH PORTS Partners met and discussed in Livorno
18:07 UNIIQ invests in Tetrahedron’s innovative crane for next-gen wind turbines
17:52 RF Navy’s Admiral Kasatonov frigate left for Barents Sea to continue testing
17:30 Evergreen issues notice for reefer cargo to Shanghai、Ningbo and Xingang, China
17:17 Tersan Shipyard (Turkey) delivers lead crab catching and processing ship of Project ST184
17:00 West Africa Container Terminal to commence Phase 2 upgrade
16:53 Port of Rotterdam increases sales of LNG and VLSFO
16:53 Indonesia hosts new national workshop on maritime security risk
16:29 UN agencies collaborate to promote seafarers’ rights treaty
16:04 INOK TM and Admiral Makarov SUMIS sign agreement on cooperation
15:38 Rosmorport reports on its icebreaker support in Russian seaports as of February 17, 2020
15:11 Rosmorport changes tariffs for services offered at the seaport of Kaliningrad
14:47 BIMCO joins Japan to regulate carbon intensity of existing ships
14:25 ESPO published its Position Paper on European Green Deal objectives in ports
14:02 CHIMBUSCO starts to supply China-produced low sulphur bunker oil to international ships
13:43 Top-level speakers announced for Unmanned Maritime Systems Technology 2020 in London
13:20 Throughput of Russia’s river ports fell by 11.6%, from 143.1 million tonnes in 2010 to 126.5 million tonnes in 2019
13:01 BC Ferries names and christens the first two Island Class ferries
12:46 Bunker prices are flat at the Far East ports of Russia (graph)
12:31 National Marine Dredging Company and Royal IHC launch TSHD GHASHA
12:08 Port of Baku and Tamiz Shahar cooperate on environmental issues
11:48 Hapag-Lloyd improves operating result by more than 80 percent in 2019
11:41 Port of Gdynia widens its internal entrance to 140 m
11:15 CMA CGM announces PSS for exports from East Russia
10:52 Russian Maritime Register of Shipping introduces new scheme of oil and gas equipment approval
10:24 Main contractor Damen and more than a hundred companies contribute to Combat Support Ship
10:24 MABUX: Bunker market this morning, Feb 20
09:53 Ships of RF Navy’s Baltic Fleet left for Atlantic to perform combat training tasks
09:35 Brent Crude futures price is up 0.32% to $59.31, Light Sweet Crude – up 0.45% to $53.73
09:14 Baltic Dry Index is up to 465 points

2020 February 19

18:37 Eni launches hull for Coral Sul FLNG in offshore Mozambique
18:06 Port of Rotterdam aims to become the most sustainable biorefinery in Europe
17:52 NOVATEK’s 2019 profit grew 5.3 times YoY to RUB 865.5 billion
17:31 Royal IHC launches TSHD GHASHA for National Marine Dredging Company
17:28 Wärtsilä and Carnival achieve real-time data exchange between ship and port
17:06 Jan De Nul finishes deepening works in the Port of Maputo
16:46 Port of Hamburg seaborne cargo throughput up 1.1 percent to 136.6 million tons in 2019
16:42 PM Yury Borisov backs RF Transport Ministry’s proposal to assign cargo to Russian-flagged and Russian-owned vessels
16:13 Boston Ship Repair gets Navy's $14.3M contract