Another remarkable year is coming to an end

by Søren Kringelholt Nielsen, CEO, Svanehøj

As the Svanehøj CEO, I have every reason to be pleased with the development we are currently going through. Since establishing the new, independent Svanehøj in late 2018, we have seen remarkable results. Due to a growth in revenue of no less than 70%, 2022 will be the best year in our company's nearly 100-year history. At the same time, we have succeeded in maintaining an exceptionally high order intake of more than DKK 700 million.

It clearly shows that we at Svanehøj manage to offer the products and services that the maritime industry requires at a time when the energy transition is gaining more and more momentum. Our patented deepwell fuel pump sales have almost tripled in 2022, supporting the growing demand for LNG-powered ships. In parallel, we have launched a new electric submersible pump design for LNG – the CS fuel pump – which makes Svanehøj the first supplier to offer both deepwell pumps and submerged pumps for electric fuel systems. We continue to invest within this segment, and in 2023 we will launch new products to support the marine industry's transition to more climate-friendly fuels.

Land-based business and full-scope service

We started 2022 with an acquisition of Wärtsilä Tank Control Systems, which significantly strengthens us on two fronts. Firstly, it has provided us with a new independent business in the production, sales, and service of land-based LNG tank gauging systems and hydraulic LPG safety valve systems. Liquified gas is a crucial part of the sustainable energy system of the future, and Svanehøj will be a significant player in the value chain that ensures the supply of gas at a global level.

Secondly, the acquisition has made Svanehøj the leading service provider of inspections, service, and calibration of cargo equipment on gas, product, and chemical carriers. Our unique combination of services removes several non-value-added costs because the shipowner can get all their servicing and maintenance from one supplier. We will continue to invest significantly in our services business in the coming years to expand our geographic and market reach.

Powering a better future

At Svanehøj, we are committed to contributing to a better world by offering excellent pump solutions and critical components that match the transition to cleaner energy types in the maritime world. Powering a better future is our new promise. Svanehøj will be known as the responsible company, which, through its actions, helps to achieve the global climate goals.

In 2022, we have laid out a new and even more ambitious business strategy. As a leading global specialist in handling critical liquids, we aim to expand our business by offering technical solutions for the infrastructure built around Power-to-X and Carbon Capture & Storage. Both on land and at sea.

Earlier this year, we won a contract to supply cargo pump systems for the two CO2 carriers that will transport liquid CO2 to the Northern Lights storage facilities in Norway. At Svanehøj, we have been providing cargo pump systems for CO2 carriers since the late 1990s, and we expect the CCS segment to become a significant market for us in the coming years.

As we support our customers' transition to cleaner energy types, we must also have ambitious goals for sustainability at Svanehøj. That is why we have launched an ESG strategy with targets for reducing our carbon footprint. In 2022, we have set targets for reducing Scope 1 and Scope 2 emissions. And in 2023, we will include targets for Scope 3 emissions. An exciting process lies ahead. Undoubtedly, it will require a great deal of effort from all of us at Svanehøj to make sustainable thinking an integral part of our corporate culture. But I do not doubt that we will succeed.

I wish all staff, customers, and business partners a Merry Christmas and a Happy New Year!