• 2021 February 1 13:16

    KN group’s income in 2020 fell to 80.5 million EUR

    The activities of the oil and liquefied natural gas (LNG) terminal operator KN in 2020 were mostly affected by the slowdown in the global economy caused by the coronavirus pandemic, leading to a drop in demand for petroleum products and stabilizing oil refining margins in record lows. Despite these global challenges, according to unaudited data, the KN group managed to secure similar revenue as in previous years and earned 10.4 million EUR adjusted net profit.
    According to unaudited data, in 2020 the KN group earned 80.5 million EUR income, while in 2019 the revenue of the KN group amounted to 104.4 million EUR. However, the decisions made by the KN to reduce the security supplement of the LNG terminal, which amounted to 26.8 million EUR per year, had the largest impact on the decrease in revenue, which directly decreased KN revenue.
    Adjusted net profit of KN group in 2020 amounted to 10.4 million EUR while the KN's adjusted net profit a year ago was 12.7 million EUR. Adjusted EBITDA for 2020 was 50.3 million EUR (71 million EUR in 2019).
    Assessing only the Q4 of 2020, the KN group had 1.5 million EUR adjusted loss (adjusted profit of 5.4 million EUR a year ago). This result was mainly influenced by the reduced volumes of oil product handling due to the pandemic effect and, accordingly, revenues from this segment. The financial result was also affected by the effect of deferred income tax due to the application of IFRS 16 “Lease”. Adjusted EBITDA of KN group in October-December 2020 was 11.4 million EUR (20.5 million EUR for a comparative period a year ago). KN group’s revenue in 2020 amounted to 19.7 million EUR in the Q4.
    "Looking at the past year, firstly, we would like to emphasize those positive things that have been achieved in this complicated business environment. We ensured the continuity of our activities, avoided coronavirus outbreaks in the organization and at the same time achieved quite a good result in terms of business – each of the terminals we manage operated at a sufficiently high utilization level and contributed to a profitable result. Unfortunately, with the start of 2021, we still have to say that the coronavirus pandemic will continue to affect the refining segment and the energy sector as a whole. The likelihood of a rapid recovery will depend directly on the pace of vaccination in key consumer markets and the associated growth forecasts for demand. Therefore, 2021 will remain a challenging period not only for us, but also for a large part of other businesses,” says Darius Šilenskis, CEO of KN.
    KN CEO notes that the year is memorable not only for business results, but also for the company's internal achievements. "We started the year with important achievements – a new business strategy until 2030 was adopted, and we also became the operator of a terminal in Brazil and thus took a strong new step in international business. Even in the pandemic year, with part of the organization working remotely, we implemented several LEAN instruments, and ended the year with three ISO certificates confirming that quality, environmental, occupational health and safety management systems of KN meet international standards. The results of the annual survey of employees show that the implementation of LEAN has been assessed as one of the most positive organizational changes,” adds D. Šilenskis.
    However, the 2021 for the KN group will also be challenging. At the end of the last year, KN received a notification from the Belarusian company BNK (UK) about the temporary suspension of the export of oil products by concluding new contracts through the KN terminal in Klaipeda. The nature of the tenders announced by the Belarusian refineries in January shows that Klaipeda is not mentioned as a possible alternative to the export of products. Belarusian oil cargo in February or subsequent periods is not nominated through KN-operated oil terminals.
    "In 2021 we no longer expect for stable Belarusian product transhipment through KN oil terminals, which inevitably puts pressure on KN's business performance and, accordingly, our efforts to continue the process of streamlining and improving operations in order to further diversify operations and compensate for potential losses through alternatives to other services and cost savings. We will have to transform our activities faster than we expected in the initial strategic assumptions, so the challenge for the organization is really big. At the same time, this situation confirms that the long-term strategy we have adopted is the right one and that the main strategic goal remains the same - KN must have several equivalent activities that contribute to shareholder return, thus reducing the potential short-term negative impact on one or another business segment,” D. Šilenskis emphasizes.
    Depending on the circumstances, KN ​​will review its investment plans this year, deferring investments that are not related to business continuity, undertake other projects related to cost reduction and operational efficiency, and work on diversifying the portfolio of services and products.
    Main financial indicators of the Group comparing 12 months of 2020 and 2019: 


    Financial results for 12 months of 2020 

    Change, compared to 12 months of 2019 

    Adjusted results for 12 months of 2020

    Change, compared to12 months of 2019 


    80.5 million Eur 


    80.5 million Eur 


    Net profit 

    32.9 million Eur 

    4.3 times 

    10.4 million Eur 



    72.9 million Eur 


    50.3 million Eur 


2021 August 4

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17:46 Shipyard OKA launches the Alexander Ivanov, ninth dry cargo ship of RSD59 series
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14:11 ClassNK grants its first DSS notation for 211,000DWT bulk carrier “DREAM CLOVER”
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13:40 Vostochnaya Verf completed shipyard's sea trials of the Okhotsk
12:06 LORP fleet carried 670 000 tonnes of cargo since the start of this year shipping season
11:09 Western Australia looks to implementing stricter controls
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09:59 Crude oil prices edging down on coronavirus-related restrictions
09:53 Baltic Dry Index as of Aug 3
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2021 August 3

18:17 Iridium Connected® Viettel S-Tracking Vessel Monitoring System wins Top 10 Sao Khuê Award
17:59 Lead passenger ship Meteor 120R of new generation launched in the Nizhny Novgorod Region
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16:47 Petersburg Oil Terminal obtains permit for construction of its new handling facility
16:24 Nigerian Chamber of Shipping becomes full ICS member
15:22 Vard delivers “Le Commandant Charcot” to Ponant
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14:41 Construction of new facilities to commence at Onezhsky Shipyard in autumn 2021 года
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13:42 The Panama Canal resumes seasonal measures to protect migrating marine life
13:12 CMA CGM announces THC for Novorossiysk, Russia import/export
12:57 ABP’s Ports of Ipswich and Ayr enable wheat cargo to be shipped more sustainably
12:22 Wärtsilä to provide efficient service support for Brazilian river tugs despite challenging operating conditions
11:59 MOL to build series of 4 LNG-fueled car carriers
11:58 FESCO starts seasonal delivery of cargo from ports of China and the United States to Chukotka
11:36 Finnlines announces adjustment of bunker surcharge in its own container traffic
10:54 Baltiysky Zavod shipyard casts third one-piece propeller for Project MR-50 product tankers
10:30 Tallink Grupp published its statistics for July 2021
10:09 Maersk raises full-year guidance
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09:41 Baltic Dry Index as of August 2
09:23 Yaroslavsky Shipyard launches non-self-propelled dredging ship of Project RDB 66.42М
09:08 Japan’s Ministry of Internal Affairs and Communications gives the green light to Iridium services
08:58 MABUX: Global bunker prices may drop on Aug 03 following sharp decline on crude market yesterday
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2021 August 2

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16:30 Sea Port of Saint-Petersburg enhanced its environmental safety
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