2017 Annual Report
Total Page:16
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THE YEAR 2017 1 THE YEAR 2017 News in 2017 ......................................................................... 04 Arctia 2017 The year 2017 in figures ..................................................... 05 CEO’s review .......................................................................... 06 2 ARCTIA Operating environment ....................................................... 08 Core messages and organisation ......................................... 12 Corporate social responsibility management ..................... 17 Financial responsibility ......................................................... 22 Society and human rights .................................................... 25 RELIABLE SERVICES IN Environment ......................................................................... 29 3 SERVICES CHALLENGING CONDITIONS The Baltic Sea ........................................................................ 35 Polar and subpolar regions .................................................. 38 Oil spill preparedness and response .................................... 40 Arctia’s key task is to safeguard icebreaking operations and Harbour icebreaking ............................................................ 41 winter navigation in the Finnish marine areas. We offer our Arctia Events ......................................................................... 42 customers reliable maritime services in challenging conditions 4 PERSONNEL AND GOVERNANCE throughout the world. In 2017, we achieved all the service Personnel and governance .................................................. 45 Competence and expertise .................................................. 49 targets set for us in the Baltic Sea. We also promoted Finland’s unique icebreaking expertise around the world. 5 FINANCIAL STATEMENTS 2017 Annual report ....................................................................... 53 Profit and loss account ......................................................... 60 Balance sheet ........................................................................ 61 Cash flow statement ............................................................ 63 Notes to the financial statements ....................................... 64 Auditor’s report .................................................................... 77 Principles of CSR reporting ................................................... 79 Stakeholders and their expectations ................................... 80 List of CSR reporting requirements ...................................... 81 Cover image: Tuomas Romu THE YEAR 2017 ARCTIA SERVICE AREAS PERSONNEL AND GOVERNANCE FINANCIAL STATEMENTS 02 01 Year 2017 Image: Tuomas Romu THE YEAR 2017 ARCTIA SERVICE AREAS PERSONNEL AND GOVERNANCE FINANCIAL STATEMENTS 03 2017 News in Polaris starts its Results of the IMOR Arctic 100 Expedition – Finland’s Arctic icebreaking duties in ice management and records are broken for expertise promoted Finland’s centenary year oil recovery project are the second time in the with a high profile published Northwest Passage throughout the world Designed and built in Finland, the In March 2017, Arctia organised an Arctia’s multipurpose icebreaker Nor- Held in Reykjavik in October 2017, world’s first LNG icebreaker Polaris ice management and oil recovery dica sailed through the Northwest the Arctic Circle Assembly is the started its icebreaking tasks in the seminar in Porvoo in cooperation Passage from Vancouver in Canada world’s largest multidisciplinary Baltic Sea in the centenary year of with Lamor. The results of the suc- to Nuuk in Greenland during July international conference on the Arc- Finland’s independence in January cessful three-year IMOR project (Ice 2017. The Northwest Passage is a sea tic region. Arctia supported the 2017. The first season of the most Management & Oil Recovery) were route from the Pacific Ocean along prominence of Finland and Finnish efficient icebreaker of our fleet was presented at the seminar. The objec- the northern coast of North America expertise by sending the multipur- full of activity. The vessel uses both tive of the project was to develop oil through the Canadian Arctic Archi- pose icebreaker Nordica to Reykjavik. liquefied natural gas (LNG) and low- recovery operations in ice conditions. pelago to the Atlantic Ocean. To mark Several high-level meetings, debates sulphur diesel as fuel. The use of Understanding the dynamics of pro- the centenary of Finland’s independ- and dinners, as well as guided tours LNG significantly reduces the ice- peller flows will enable the use of an ence and the chairmanship of the Arc- of the icebreaker open to all were breaker’s emissions. The EU sup- oil recovery vessel’s machinery and tic Council, Arctia invited researchers held on board Nordica. The ice- ported the construction of Polaris propellers so that the oil in the ice from several different countries to breaker as a conference venue was with TEN-T funding. can be collected even more effi- this Arctic 100 Expedition. Represent- Arctia’s gift to the 100-year-old Fin- ciently into the oil recovery unit. The atives of the United States and Cana- land. Arctia also organised, together participants to the IMOR seminar dian Coast Guards and the indige- with the secretariat of the confer- included guests from, e.g. Canada, nous peoples of North America were ence, a talk on international coop- Russia and France. also invited to take part in the jour- eration in the use of icebreakers. The ney. The expedition promoted dia- talk was open to all conference par- logue between the worlds of industry ticipants. and research concerning research opportunities in the polar regions. THE YEAR 2017 ARCTIA SERVICE AREAS PERSONNEL AND GOVERNANCE FINANCIAL STATEMENTS 04 2017 Image: Patrik Barck Employees Result for the Turnover Operating profit financial year Gross investment Return on capital invested Total MEUR MEUR MEUR MEUR % 265 268 273 70 25 25 150 2017 Offshore personnel 65 20 20 120 0.1 233 60 15 15 90 237 237 55 10 10 60 Onshore personnel 50 5 5 30 2016 32 36 45 0 0 0 5.7 31 15 16 17 15 16 17 15 16 17 -5 15 16 17 Operating days Baltic Sea 2017 48.9 2017 0.1 2017 -1.4 2017 5.7 11.8 385 2015 447 175 2016 2016 2016 2016 Offshore 60.7 12.9 9.1 131.6* 61 2015 2015 2015 2015 2017 2016 2015 65 380 64.4 18.1 14.6 14.8 *Polaris THE YEAR 2017 ARCTIA SERVICE AREAS PERSONNEL AND GOVERNANCE FINANCIAL STATEMENTS 05 CEO’s review 100-YEAR-OLD FINLAND IS AN EXPERT IN THE ARCTIC fter Finland’s exports began to recover in 2017, tive measures were placed on offshore energy expertise in all areas of the Arctic region. Regret- A Arctia served the needs of industry by safe- production in North America. Turnover fell on tably, protectionism has also had an impact on the guarding winter navigation in line with its service the previous year, and unfortunately the financial opportunities of exporting icebreaking services to targets. In accordance with its ownership policies, results were negative after five positive financial both the western and eastern markets. The latest fleet renewal, which was started in 2014, was con- years. However, we successfully opened new mar- legislative changes, as well as the trade policy direc- tinued in winter 2017 with a second new build ket areas in accordance with the strategy by serv- tions undermine the prospects of service exports. when the world’s first LNG-powered icebreaker ing customers in the Pacific Ocean. At the turn of the year, the International Mari- Polaris joined the fleet. Sailing with the Finland We continued to access new markets during the time Organisation IMO adopted the Polar Code 100 logo, the icebreaking efficiency of the vessel Arctic 100 Expedition when the multipurpose ice- that regulates maritime safety. Arctia blazes the proved to be the best of the fleet already during breaker Nordica sailed from the Pacific Ocean to trail in this trend, which is attested by our success- its first winter of operation. International icebreak- Europe through the Canadian Arctic Archipelago ful Arctic operations also in 2017. ing cooperation in the Baltic Sea area continued along the Northwest Passage. During the voyage, Arctia has acted as a limited liability company successfully in the form of practical application of a group of international researchers observed the since 2010. The operating model has shown its treaties in the Bay of Bothnia service area. development of the Arctic region while the capabil- strengths: with operations as a company, interna- The service needs of our customers in the inter- ities of the ship and its crew were proven with the tional turnover has accounted for more than 40% national market changed in 2017 when new restric- record-fast passage of the route. During the voy- of the Group’s total turnover. This, on the other age, we raised the profile of our services hand, has enabled us to strengthen our balance in South Korea and in the United States, sheet position and investment capacity so that we Canada, Greenland and Iceland. have been able to start the new build programme Arctia is diversifying its operations fur- without increasing the burden of shipping route ther into new services, such as research fees or taxes. The remaining total burden of the and international fairway icebreaking. It company’s tax footprint is considerably small. is also supporting the polar traffic of pas- In 2018, Arctia will focus on safeguarding the senger ships, increasing the utilisation rate continuity of winter navigation while ensuring