Neste Oil to Sell Fleet of Ships, Will Outsource Nearly Everything
Finnish oil refining and marketing firm Neste Oil has announced it will be selling off its entire fleet of ships and will outsource all ship management functions currently covering them.
As part of the restructuring, Neste Oil will sell five tankers (Mastera, Futura, Neste, Kiisla, and Suula) and three tugs (Ukko, Ahti, and Esko) to companies owned by Finland’s National Emergency Supply Agency and the Ilmarinen Mutual Pension Insurance Company. These will be sold at the current market value and Neste Oil will lease the vessels back under long-term contracts.
In addition, Neste Oil plans to sell three of its other tankers – Tempera, Purha, and Jurmo – at a later stage, together with its 50% ownership of another three tankers – Stena Poseidon, Palva, and Stena Arctica – which are owned together with the Stena Group of Sweden.
This decision directly affects around 320 personnel from Neste Oil’s ship management division who will soon be transferring to a new employer according to a statement on their website.
Neste Oil will however, retain its chartering team which will be “integrated with Neste Oil’s organization.”
“Neste Oil’s shipping needs have changed in recent years,” explains Neste Oil’s President & CEO, Matti Lievonen. “The proportion of the Group’s cargoes carried by Neste Shipping ships flying the Finnish flag has steadily declined. Because of its high costs level, Neste Shipping has been unable to compete profitably on the international shipping market. Ensuring the long-term continuity of the business in its present form would also call for significant investments. As a result, we are now planning to exit the shipping business and reinforce our focus on developing our core cleaner traffic solutions.”
“I am glad that we have been able to find an arrangement that will keep the key vessels needed by Neste Oil in Finnish ownership and in use by us,” continues Lievonen. “These vessels, together with vessels chartered from other shipowners, will meet our current shipping needs and ensure that we are able to continue to provide our customers with a high level of service. The arrangement will continue to ensure Finland’s security of supply in the area of marine-based oil transportation.”
Neste Oil notes that this restructuring is expected to free up approximately EUR 60 million of capital from Neste Oil’s balance sheet and improve the Group’s result by approx. EUR 10 million annually during the coming years.
Source: BY ROB ALMEIDA gcaptain
More Maritime News
- Russia plans special maritime policy for Indonesia The Russian government will offer various forms of modern technology to support Indonesia’s maritime sector, which has been made a priority by new government of President Joko “Jokowi” Widodo. “The Russian government has made a special policy on Indonesia’s maritime sector,” Russian Deputy Economic Development Minister Alexei Likhachev said on Wednesday in Jakarta, adding that his ...
- Academy: Government Plan Won’t Save Reef Editor: Maritimesun Nature Is Speaking The Australian Academy of Science has warned that a draft plan to protect the Great Barrier Reef won’t prevent its decline and fails to address key pressures affecting the Australian icon. In its submission to the Australian and Queensland governments’ Reef 2050 Long-Term Sustainability Plan, the Academy warns that the draft plan fails ...
- Germany fascinated by RI’s maritime vision President Joko “Jokowi” Widodo’s vision to make Indonesia the world’s maritime axis has prompted Germany, the world’s third-largest arms exporter, to strengthen the two countries’ bilateral partnership with maritime defense. German Ambassador to Indonesia Georg Witschel said that German Foreign Minister Frank-Walter Steinmeier would be visiting Indonesia on Nov. 2-3 to conduct bilateral talks with Indonesian Foreign ...
- Sustainable Shipping Initiative signs shared commitments The Sustainable Shipping Initiative (SSI), a pioneering coalition of companies from across the global shipping industry focused on uniting commercial growth with sustainable behaviours, has announced that all of its members have signed a set of shared commitments to set a clear benchmark for sustainable practices. These shared commitments also aim to create greater clarity ...
- MAST calls for increased maritime security amid likely terrorist attack Maritime security firm MAST has warned the shipping industry to enhance security levels to counter the threat of an increasingly likely terrorist attack. The company released the warning particularly to oil tankers, as terrorist group Al-Qaeda hinted that it is planning to execute strategic attacks on choke points of oil shipments. The terrorist group insinuated this in ...