Arctia Shippingsafeguarding the Environment
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YEAR 2014 Arctia Shipping safeguarding the environment The year 2014 Best icebreaking services • The year 2014 in brief ..................................................................04 • CEO’s Review ................................................................................05 • News in 2014 ................................................................................06 SAFELY Arctia Shipping in brief • Operating environment ...............................................................09 • Core messages and organisation ................................................12 ON ICY SEAS • Corporate social responsibility ....................................................14 The principal task of Arctia Shipping is to ensure the smooth flow Service areas • Icebreaking services ......................................................................19 of winter navigation so as to enable the daily work of Finnish • Offshore services ..........................................................................22 • Oil recovery services .....................................................................24 industry and citizens to proceed without disruptions caused by • Harbour icebreaking services .......................................................26 ice conditions. We achieved all of the service targets set for us on • Events services ..............................................................................28 the Baltic Sea in 2014. Outside the icebreaking season, we also Personnel and governance successfully exported Finnish special expertise abroad. • Arctia as an employer ..................................................................31 • Board of Directors .......................................................................33 • Management Team ......................................................................34 • Fleet ...............................................................................................35 Financial statement 2014 • Annual report ...............................................................................37 • Income statement ........................................................................43 • Balance sheet ................................................................................44 • Financial statement ......................................................................46 • Notes to the financial statements ...............................................47 • Auditor’s report ............................................................................56 02 PROFITABILITY REMAINED AT A GOOD LEVEL The year 2014 All of Arctia’s business areas achieved positive results and cash flows. The company’s turnover and 01 profit fell slightly due to the easy ice situation on the Baltic and the shorter summer chartering peri- ods for the company’s multipurpose icebreakers. ARCTIA PARTICIPATED IN SEAFLOOR RESEARCH In the summer, the multipurpose icebreaker Fennica provided assistance in seismic research to the north- east of Greenland. Arctia’s vessels are also extremely well-suited to operations of this nature. This successful chartering is a good example of the versatility of the Fennica and Nordica. SERVICE TARGETS MET The ice winter on the Baltic was mild, but at the bottom of the Bay of Bothnia the icebreaking season continued until mid-May. All of Arctia’s conventional icebreakers apart from the Sisu took part in icebreaking operations. The service targets set were met for icebreaking with regard to aspects such as waiting times. NEW HARBOUR ICEBREAKER FOR THE BOTHNIAN ARC The Ahto is the first new Finnish icebreaker in fifteen years. The vessel will be fitted with oil recovery equip- ment and will improve the reliability and emergency preparedness of northern ports. We continued our investment The Arctia Shipping fleet campaign in training for The Arctia Shipping icebreakers was complemented by a The foreign ministers of supervisors. Our objective for only accumulated 350 operat- new harbour icebreaker, the countries such as Canada and the period was to improve the ing days due to the late start of Ahto. The ship was mostly Iceland were introduced to ice- cooperation between vessels the ice winter. constructed in Finland. breaking by Arctia Shipping. and Group management. 2014 In late summer, the Fennica In order to ensure the respon- The company’s finances The Arctic Economic Council provided assistance in seismic sibility of our sub-contracting remained on a solid footing, (AEC) established in September research mapping on the wa- chain, all equipment suppliers and we were able to maintain elected the CEO of Arctia ters off Greenland. and service providers were ship investments at a good Shipping, Tero Vauraste, as one issued with clear instructions level. of its vice chairmen. regarding responsibility. Profit for the Personnel Turnover Operating profit financial period Gross investment Return on investment MEUR MEUR MEUR MEUR % Total 267 80 50 50 25 2014 261 311 75 40 40 20 Ship personnel 70 30 30 15 11.3 236 230 254 65 20 20 10 60 10 10 5 Shore personnel 2013 55 0 0 0 31 12 13 14 12 13 14 12 13 14 12 13 14 31 32 12.5 2014 2013 2012 2014 61.3 2014 16.8 2014 12.9 2014 15.6 2012 2013 63.0 2013 17.5 2013 13.4 2013 17.8 32.3 2012 75.3 2012 44.6 2012 39.9 2012 16.0 04 Cooperation on the Baltic Sea was drawn-out “How to break the CEO’s Review a given a new dimension ,as the ice” discussion. The company existing Nordic icebreaking treaty was obligated to increase the was complemented by a similar utilisation rate of its fleet and to treaty between Finland and Russia. improve its competitiveness across The Finnish Transport Agency all business areas. The continuity SUPPORTING FINLAND announced that it would exercise of the company’s main task of its icebreaking contract options icebreaking on the Baltic Sea Despite a minor decrease in for the Fennica and Nordica for must be secured by a complete turnover, all the business units 2017 and 2018. replacement of the fleet over the of Arctia Shipping posted next 15 years, financed entirely positive results and cash flows, Year of Polar geoeconomics by market-based instruments. The and the company’s profitability In 2014, market conditions were company will achieve this through remained at a robust level. The influenced by the geoceonomic competitive icebreaking on the life span of Arctia’s fleet was aspects of Polar development. The Baltic Sea and growth in Polar extended further as the five-year difficulties of the Russian market business. investment programme is nearing escalated regrettably quickly. Our completion. The new harbour customer’s Alaskan operation was Future prospects icebreaker Ahto was received from interrupted due to the customer’s The development of the Polar Uudenkaupungin Työvene Oy, and situation with the authorities. market will be delayed by the the vessel was put into service in The price of oil fell by 60–70%. international geoeconomic the Bothnian Arc. However, the company was able situation and its ramifications. to achieve good financial results The company has a solid contract Power on the Baltic Sea in the fiscal period despite the portfolio and projected profit The needs of our services’ end above-mentioned developments. for 2015, and the fiscal period is users were governed by the The company seeks to improve projected to be a profitable one. sluggish climate in international the Arctic business environment The operational decisions of our trade. Due to the mild winter, in cooperation with the Arctic customers may have some degree the need for icebreaking services Economic Council. of impact on the company’s was concentrated on the Bay performance. of Bothnia and eastern Gulf of Industrial peace achieved Finland. All service areas received The state owner outlined the excellent ratings for qualitative future of Arctia Shipping in late icebreaking service targets. 2014, putting an end to the Tero Vauraste, CEO 05 NEWS IN 2014 Late start to Fennica performed New icebreaker for Arctic Economic ice winter ice management Bothnian Arc Council established north-east of as the voice of trade Greenland and industry The Finnish icebreaking season be- As the Alaskan operation was on In August, the latest addition to Canada’s chairmanship of the Arctic gan exceptionally late, and the first hold, the Fennica spent late summer Arctia’s icebreaking fleet was chris- Council culminated in September icebreaker only set sail from Kataja- in the waters off Greenland. The ves- tened Ahto in Uusikaupunki. The with the establishment of the new nokka for the north in mid-Decem- sel was last chartered for similar du- vessel was largely manufactured in Arctic Economic Council (AEC). The ber. However, high winds on the Bay ties in the autumn of 2011. Finland and is owned by a joint ven- council includes representatives of Bothnia meant that assistance The Fennica successfully provided ture of Arctia and the Port of Kemi, from the business sectors of eight was required until the middle of May, icebreaking assistance in seismic re- Arctia Karhu Ltd. The Ahto will mark- Arctic states and observers from six when the last icebreaker returned to search mapping. Crew rotation took edly improve the safety and smooth- organisations representing aborigi- its home port in Helsinki. place via Spitsbergen. ness of winter navigation in the Bay nal peoples. Arctia’s icebreakers only accumu- of Bothnia. At its first meeting, the council lated 350 operating days. Of Arctia’s The roughly 40 metre-long har- elected the CEO of Arctia