Towage company Svitzer was admitted to trading and officially listed on Nasdaq Copenhagen at at 9am Copenhagen-time on 30 April 2024 with a billion US dollar market cap under the stock market ticker symbol: “SVITZR“.
The company listed at 200 Danish Kroner per share (AUD$43.75), giving it a market cap in excess of $1 billion. Prices subsequently rose to DKK 238.50 by 01 May although, at the close of trading on 02 May, prices fell somewhat to DKK 222.
Commenting on the listing, CEO Kasper Friis Nilaus, said: “We are excited about this next chapter and significantly the value we can offer our customers, investors and other stakeholders as a stand-alone company. In particular, the innovation and excellence we can drive in the sector, helping customers in meeting government and regulatory decarbonisation obligations, whilst maintaining safe and reliable shipping and port operations.”
Commenting a few days before the listing, Morten H. Engelstoft, Chairman of Svitzer’s Board of Directors, said: “With the demerger from APMM and separate listing of Svitzer, an era of 45 years under APMM’s ownership comes to an end. In this period, Svitzer has seen significant expansion and change, establishing itself as a global market leader that operates to the highest professional standards. [This] is a landmark event in Svitzer’s 190 years’ history as the company returns to its former status as stand-alone company with the best possible outset for delivering value to customers, investors and other stakeholders.”
According to Svitzer’s Group Annual Report for 20203, Svitzer employs approximately 4,000 staff, of which 778 are onshore and over 3,200 are seafarers. It operates 456 vessels in 37 countries and, in 2023, generated revenues of DKK 5.8bn (AUD$1.27 bn), resulting in Earnings Before Interest Tax Depreciation and Amortisation of DKK1.7bn (AUD$371.88 million). The results were driven by a “record number of harbour towage tug jobs of more than 150,000 in total,” Mr Nilaus noted in the 2023 annual report.
The company’s earnings per share in 2023 stood at DKK 22.35, up approximately 31$% since the end of 2021. With an earnings per share of DKK22.35 and a share price of DKK 222, investors are currently valuing Svitzer at a multiple of approximately ten times earnings.
In its prospectus, Svitzer Group estimated the global towage market to be approximately US$11.6bn in 2022, a market that has grown at a compound annual growth rate of 2.7% between 2018 and 2022. It expects the market to grow faster – at a compound annual growth rate of 4.6% between 2022 and 2028. Growth drivers include a forecast increase in global trade volumes (which thereby increases the number of port calls of approximately 1% on a compound annual growth rate basis); the size of ship in the global fleet getting bigger which will require more tugboats to berth / unberth; and an an increase in the average tariffs for towage services.
Pictured: a Svitzer Australia tug carrying out a fire-fighting display opposite the Balmain Sailing Club. Photo credit: Shipping Australia.
Svitzer celebrated its listing with simultaneous list parties around the world, including at the Balmain Sailing Club, Sydney, where guests celebrated at the time of the listing by ringing bells, firing party poppers and blowing party whistles. Guests also took part in a Svitzer-themed raffle to win Svitzer merch, and a fire-fighting tug in the river put on a fountain display.
Videlina Georgieva, managing director, Svitzer Australia, thanked all the stakeholders including customers, partners, and staff. “Thank you for bringing the magic to our business and we hope we can bringing the magic to your businesses,” Ms Georgieva told the assembled guests. She also paid particular tribute to all of the staff at Svitzer Australia and describing the staff as the “silent heroes” of the company for their excellent work.
Pictured: Videlina Georgieva, managing director, Svitzer Australia, who thanked all the staff for their hard work; she described the staff as the “silent heroes” of the company.
Pictured: (left) Elliott James of Monson Agencies and (right) Dylan Sheehan of Svitzer Australia.
