Following a dive in both revenue and earnings in the first year of the Covid-19 pandemic, 2020, Denmark-based Viking Life-Saving Equipment presents its best result on record, according to the company’s annual financial report on last year.

Net revenue came to DKK 2.7bn (USD 400m), which was slightly lower than the record year of 2019, but the pre-tax result ended at DKK 277m compared to DKK 205m in the same year.

According to the company, the result for 2021 was significantly higher than expected, mainly borne by an unexpectedly strong second half-year.

”Our bottom line is at a historically high level, which is driven by two factors. On the whole, we have had fine product sales, but service has seen growth in all areas, with both traditional and opt-in services having had high activity levels,” says Chief Executive Henrik Uhd Christensen in a comment.

”The other reason is reduced costs, which we, however, cannot expect to fully maintain in 2022 as there will also be a backlog in terms of travel as well as participation in fairs and exhibits across the world.”

The company expects activity to be high again this year, and the result to be in line with 2021. These expectations are tied to larger uncertainty than usual due to geopolitical turmoil, says the company in reference to the war in Ukraine.

Cruise industry hit hard

Viking Life-Saving Equipment has three main segments: cargo ships, passenger ships and offshore, which have developed quite differently. The cruise industry has been and remains hard hit by Covid restrictions, while the container sector has seen major advancement.

”In cargo, there is high activity in everything that can carry a container, whereas tankers have had a tough year. The offshore industry benefits from high oil prices, but its major growth engine, exploration activities, is far from having the same reach as previously. The large fluctuations within individual market segments affect our business in different ways, but mostly in a positive manner,” says the CEO.

Viking has had to postpone its business plan, BP25, and explains the move citing ”the uncertainty derived from the Covid-19 pandemic” but expects to complete it this year.

”Besides the top and bottom line growth in which the latest fiscal year’s development has strengthened confidence, BP25 will be marked by an intensified effort on the global green agenda. The goal is to be the industrys’ leading company in terms of sustainability, and to achieve carbon neutrality by 2030,” reads the financial statement.

The downturn in 2020 meant that the firm had to dismiss 300 employees.

English edit: Jonas Sahl Hollænder

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