2019 Annual Report
Total Page:16
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YEAR 2019 Arctia 2019 1 YEAR 2019 The year 2019 in figures ...................................................... 04 RELIABLE SERVICES IN CEO’s review ...........................................................................05 2 ARCTIA Operating environment ........................................................07 CHALLENGING CONDITIONS Organisation ..........................................................................09 Corporate social responsibility management ..................12 Financial responsibility .........................................................15 Society ....................................................................................17 Environment ..........................................................................21 Arctia Ltd safeguards Finland’s maritime transport in the 3 BUSINESS OPERATIONS ice winter conditions in the Baltic Sea, ensures good water Icebreaking .............................................................................27 transport links and offers solutions for safe and efficient Fairway maintenance ............................................................29 Hydrographic surveying ........................................................31 seafaring in challenging conditions throughout the world. In addition to services in icebreaking, fairway maintenance 4 PERSONNEL AND GOVERNANCE Personnel and governance ...................................................34 and hydrographic surveying, Arctia’s tasks include, e.g. Competence and expertise ..................................................37 pipeline and cable laying, towing operations, support in 5 FINANCIAL STATEMENTS 2019 the installation and maintenance of underwater structures, Report on operations ............................................................41 Profit and loss account .........................................................46 oil spill preparedness and response, hydraulic enginee- Balance sheet .........................................................................47 ring, and the manufacture of plastic spar buoys and other Cash flow statement ..............................................................49 Notes to the financial statements ........................................50 buoys. Auditor’s report ......................................................................64 Principles of CSR reporting ...................................................66 Stakeholders and their expectations...................................67 List of requirements for CSR reporting ...............................68 YEAR 2019 ARCTIA BUSINESS OPERATIONS PERSONNEL AND GOVERNANCE FINANCIAL STATEMENTS 02 01 Year 2019 Picture: Arctia/Tommy Berg YEAR 2019 ARCTIA BUSINESS OPERATIONS PERSONNEL AND GOVERNANCE FINANCIAL STATEMENTS 03 ARCTIA 2019 More than 20 offices and fairway stations in Employees Key figures Finnish waters areas Result for the Total Turnover M€ Investments M€ financial year M€ 278 80 442 268 -2,0 75 1,4 (2018) -1,4 (2017) Offshore personnel 70 243 65 237 Operating profit €M 15 223 60 10 55 Onshore personnel 0,0 5 50 32 45 2,2 (2018) 0,1 (2017) 0 31 219 19 18 17 19 18 17 12,7 50,9 Return on capital 79,1 48,9 invested % 9,5 5,7 0,1 2019 2018 2017 0,8 (2018) 0,1 (2017) 04 YEAR 2019 ARCTIA BUSINESS OPERATIONS PERSONELL AND GOVERNANCE FINANCIAL STATEMENTS CEO’s review NEW ARCTIA Year 2019 was the first full year of operation for the better meet the needs, development and future chal- work towards better profitability by increasing the ef- merged Arctia-Meritaito. As a result of the integra- lenges of the new Arctia’s business operations. We ficiency of our internal operations, by acquiring new tion of the companies, the Group’s business ope- will also actively continue this development work with customers and by developing our services. rations now also include fairway maintenance and respect to the management and the entire personnel. In terms of the business units, the key events in hydrographic surveying in addition to the traditional Despite the efficiency measures, the results of the icebreaking in addition to the above-mentioned free- icebreaking in the Baltic Sea. The number of emplo- Group saw a loss of 2.0 million euros with a turnover of zing of offshore operations included the transfer of yees and turnover of the Group increased considerab- 79.1 million euros, which left us far behind our targets. Nordica and Fennica to Kotka. In hydrographic sur- ly as a result of the merger. In early 2020, we gave up Among the specific matters that have contributed to veying, we achieved a record turnover and expanded the brand name Meritaito and started using the Arctia this were the small number of icebreaking days due the business operations to airborne laser scanning brand in all our business operations. With its wider to the mild winter, the lower than expected project surveying. In fairway maintenance, we continued ac- shoulders, the new Arctia is capable of offering even margin in fairway maintenance and hydrographic sur- tive development of the service concept. The most ex- more extensive overall solutions to its clients. veying contracts, and the higher than predicted main- tensive project in hydraulic engineering was the parti- In addition to the integration, one of the most signi- tenance costs of the icebreaking fleet. Naturally, we cipation in the building of the Kimola canal, which was ficant changes during the year was the freezing of the will not settle for this level of performance, but we will completed in late 2019. offshore business concept and the transfer of multi- During the past autumn we were working on a new purpose icebreakers Nordica and Fennica to icebrea- group strategy, which, at the time of writing this, is still king duties in the Baltic Sea in order to gain cost sa- partly unfinished. On the basis of this work, the de- vings. Due to the quiet commercial period of several velopment areas and key projects in 2020 will focus years in the Arctic areas, offshore business available on the development of internal operations, increasing to Arctia has been very limited. We are prepared to added value for the customers, strategic partnerships, examine the concept and possibly relaunch the in- and improving profitability. Corporate responsibility is ternational operations if the markets improve in the a fixed and integrated element in Arctia’s operations future and lucrative long-term chartering contracts with the theme “responsibly together”. are put out to tender. Summer chartering of multipur- I wish to thank all Arctia employees for your excel- pose icebreakers would enable considerable increase lent work during 2019. The year involved many chan- in the utilisation rate of the fleet, which would furt- ges and challenges, which we overcame together. This her ease the pressure of cost increases in traditional is the way forward. My warmest thanks also go to all icebreaking. our clients and stakeholders for your confidence and During 2019, there were several personnel chan- good cooperation. ges in the company’s management. In addition, the management’s areas of responsibility were reviewed Maunu Visuri and the management system was developed. In addi- President and CEO tion to cost effectiveness, we want these reforms to YEAR 2019 ARCTIA BUSINESS OPERATIONS PERSONNEL AND GOVERNANCE FINANCIAL STATEMENTS 05 02 New Arctia YEAR 2019 ARCTIA BUSINESS OPERATIONS PERSONNEL AND GOVERNANCE FINANCIAL STATEMENTS Picture: Arctia 06 Operating environment RELIABLE SERVICES IN WATER AREAS AROUND THE YEAR The Arctia Group offers extensive services in challenging conditions in sea areas, inland waterways, and ports. STAKEHOLDERS with the authorities, e.g. by taking part in various In October, Arctia took part in a marine rescue task events and cooperation exercises for the authorities. at the request of the national Maritime Rescue There are many contributors to ensuring smooth In April, multipurpose icebreaker Fennica took Coordination Centre. The Pärnäinen fairway team and safe navigation in both the private and the pub- part in the POLARIS 2019 sea rescue exercise prac- in Nauvo rescued a person in a boating accident in lic sector. In Finland, in addition to our own person- tising a mass evacuation operation. The interna- the Turku archipelago. The fairway maintenance nel, we carry out stakeholder collaboration together tional exercise was part of the work of the Arctic boat was well suited for the evacuation task in the with clients, the authorities, ports, charterers, trade Coast Guard Forum, with the Finnish Border Guard shallow waters close to the shore. and industry, research organisations, training insti- acting as its chairman. In the exercise, more than In May, the international, top-level Arctic Secu- tutes, and other operators in the maritime cluster. 200 persons were rescued on board the ship, with rity Round Table event of the Munich Security Con- In addition to our clients, our overseas stakehol- further evacuation mainly taking place by helicop- ference was held on IB Sisu. The event with about ders include, e.g. the authorities, shipping opera- ters. The smooth running of the exercise proved 70 guests was hosted by Timo Soini, Minister for tors, non-governmental organisations, and research Fennica’s potential as an evacuation ship, as well Foreign Affairs. The event was part of the meeting institutes. Through stakeholder cooperation, Arctia as the personnel’s competence especially in heli- of the Arctic Council and the conclusion of Finland’s contributes to the visibility