This is a legacy page. Please click here to view the latest version.
Wed 21 Jun 2017, 07:23 GMT

Global Risk Management posts record earnings in 2016-17


Fuel risk management specialist achieved a 75% increase in pre-tax earnings.



Global Risk Management - part of United Shipping & Trading Company (USTC) Group - reports that it managed to surpass last year's record earnings result during the 2016-2017 financial year, which runs up until April 30.

The Denmark-based firm, which specializes in fuel risk management solutions, achieved its best ever earnings before tax figure of $12.03 million - surpassing the previous year's result of $6.85 million by 75 percent.

Gross profit for the year rose by $4.67 million, or 29.7 percent, to $20.37 million.

The average number of monthly trades performed for clients increased by more than 40 percent compared to last year, and was up by more than 350 percent compared to four years ago.

Meanwhile, business volume rose by 100 percent compared to the previous financial year.

Commenting on the results, managing director Hans Erik Christensen said: "This year's result is extraordinary, especially since we are operating in a low-margin market environment. However, we have managed to expand the client base, especially in Europe, Scandinavia, Asia and the Middle East. Furthermore, we have a fairly even distribution of clients in our business areas shipping, aviation, suppliers and industrial companies, which makes us less vulnerable to economic downtrends in one or more of the business areas."

Christensen added: "Heading into the financial regulation, MIFID II, it is of great importance that our company has managed to obtain solid growth in terms of turnover, gross profit and generally increasing business activities. As the regulation authorities have strict requirements to our financial position, the 2016/17 result strengthens our position in that respect. Our team of employees are extremely dedicated and have all worked hard to deliver the very satisfying result. It is in our nature to add value to our clients while also continuously looking into optimising our own business; always considering if we can do things smarter, faster or better, to the benefit of both our clients and ourselves."

MIFID II regulation

The company notes that it has worked with external advisors for two years and implemented additional IT systems and procedures in preparation for the coming compliance to Markets in Financial Instruments Directive II (MIFID II) - the EU's legal regulation for financial companies from January 2018.

"Being subject to the regulation enhances Global Risk Management's ability to extend the portfolio of client services - from initial contact to detailed overview of trades and positions via new, improved IT systems. The process towards becoming a regulated company has required considerable resources both as regards employees as well as financial in the form of investments in supporting IT systems and physical office setup changes to comply with MIFID II regulation," the Danish firm said.

Contribution to growth

Global Risk Management explained that its offices in Copenhagen, Middelfart and Singapore all contributed to the company's growth, whilst the Unitrading team - the company's internal trading desk - is said to have added "great value for clients as well as colleagues".

"The year has brought consolidation of the teams - adding more skilled employees and building a sense of unity - enhancing the one global team spirit which is an important company value. One global team also means that clients get the same optimum service no matter what team they are in touch with, and that the employees help each other at all times," the company noted.


Map of Strait of Hermuz. Three vessels struck by projectiles in Gulf waters  

UK Maritime Trade Operations Centre reports attacks on ships near Dubai and the Strait of Hormuz.

Photograph of the Aframax tanker Eagle Brasilia at sea. AET completes first bio-LNG trial on dual-fuel tanker  

Tanker operator tests renewable fuel ahead of FuelEU Maritime compliance requirements

Tangier Maersk vessel. Maersk introduces emergency bunker surcharge amid Middle East fuel crisis  

Shipping line cites Strait of Hormuz disruptions affecting 20% of global fuel supply.

World map with '15' overlaid text. ElbOil celebrates 15 years since founding  

Hamburg-based trader and broker has expanded its operation to six international offices since inception.

Cosco Shipping vessel with bunker tanker alongside. Hong Kong completes first green methanol SIMOPS bunkering operation  

Hong Kong Port Alliance delivers 200 tonnes of green methanol to dual-fuel container vessel.

Everllence 8L51/60DF engine. German ferry operator TT-Line cuts CO2 emissions with bio-LNG switch  

TT-Line reports emissions reduction after operating two Baltic Sea ferries on bio-LNG throughout 2025.

CMA CGM vessel with bunker delivery tanker alongside. CMA CGM vessel completes record biomethanol bunkering in Yangshan  

Delivery marks first time a vessel in its fleet has operated on biomethanol.

Photograph of tanker valves. Pres-Vac highlights tanker valve compliance requirements for alternative fuels  

Company outlines regulatory standards and performance criteria for pressure-vacuum relief devices on methanol and ammonia vessels.

Chicago Express vessel. Hapag-Lloyd introduces emergency fuel surcharge amid rising bunker prices  

Container line cites geopolitical circumstances for new charge effective late March 2026.

HD Hyundai and ABS joint development project ceremony for nuclear-powered electric propulsion systems. ABS and HD Hyundai partner on nuclear propulsion for container ships  

Classification society and South Korean shipbuilder to assess feasibility for 16,000-teu vessel.


↑  Back to Top