Karstensen Group posts 2024 loss amid cost pressures but highlights strong divisions, new contracts and a positive outlook for 2025
Karstensen Group has posted a loss for the 2024 financial year, citing high material costs, component delays and interest charges on earlier fixed-price contracts as the main factors.
The results were announced this week and show that while some divisions performed strongly, the shipbuilding side was hit hard despite delivering five newbuild vessels to Norway, the Faroe Islands and Iceland.
The group — comprising Karstensens Skibsværft, Danish Yachts, Karstensen Shipyard Poland, KS Elektro and Nuuk Værft — said these pressures pushed the main shipyard’s performance below expectations, even with high activity levels.
Several group companies reported positive results. Karstensens Skibsværft’s repair department exceeded expectations after a busy year, while KS Elektro, Nuuk Værft and Danish Yachts all saw positive developments and satisfactory earnings. Karstensen Shipyard Poland faced rising material costs and ongoing expenses linked to upgrading its Gdansk facilities, but still achieved what the group described as a satisfactory result.
Chief executive Knud Degn Karstensen said: “We are not satisfied with the year’s overall result, but we can clearly see that parts of our business are delivering strongly and moving in the right direction. Our long-term strategy remains unchanged, and we expect the investments and adjustments we have made to bear fruit. Therefore we are confident and working towards generating positive earnings again in 2025.”
The group said its outlook for the coming years is positive. It has grown its workforce, invested in production facilities, and taken measures to hedge against future price increases and interest costs. Since the start of 2024, it has signed eight major contracts, bringing its order book to 19 new fishing vessels worth a total of DKK 5.6 billion, which it says underlines its strong market position.
In addition, a series of major refits are planned for the shipyard’s repair department. The group believes these projects will provide a solid foundation for future activity and earnings in 2025 and beyond.