Hoyer targets investments

STAY POSITIVE

FINANCIALS • HOYER REMAINS A PROFITABLE COMPANY DESPITE THE ECONOMIC HEADWINDS OF THE PAST YEAR AND IS PLANNING TO STAY THAT WAY WITH TARGETED INVESTMENT

THE HOYER GROUP achieved turnover of €1.18bn in 2019, a 0.9 per cent increase over the 2018 figure, despite the economic slowdown in Europe. Pre-tax profit came in at €38.1m. The growth in revenues derived in part from higher volumes in the UK retail fuel distribution sector, new business and transport growth in the gas logistics segment, improved returns from tank container leasing, and some currency effects derived from the strong US dollar.

Hoyer’s Chemilog business unit, the largest of the five units in the group, increased turnover by 0.6 per cent, largely through increased capacity utilisation and greater efficiency. The Deep Sea business unit, responsible for overseas activities, grew turnover by 3.7 per cent, primarily as a result of exchange rate movements. The Petrolog business unit, which includes fuel distribution services to service stations and airports, aircraft refuelling and bitumen transport, saw a drop in turnover but pre-tax earnings “improved significantly”. The Gaslog business unit boosted turnover by almost 6 per cent and Hoyer says the development of its business transporting industrial, chemical and special gases was “pleasing”, especially in Germany. The Netlog business unit, which includes global container management, tank cleaning and maintenance, depot services and related technical services, increased turnover by 6 per cent.

PLANNING TO STAY AHEAD “The macroeconomic framework conditions for the [Hoyer Group] companies were very difficult in 2019,” the company says in its annual report for the year. “A sustained upswing in Germany and Europe had come to an end and the global economy was in a cooling phase. The reasons for this … were on the one hand negative effects due to a worsening of the trade conflicts between China and the USA, and the expectation of growth-retarding effects resulting from an unregulated Brexit. Increasing political uncertainties also negatively affected economic growth.”

In the face of this uncertainty, Hoyer trimmed its investment plans for the year from €173m to €106m, although this was still well above the levels spent in the previous two years. Investment was concentrated on the rejuvenation and modernisation of the tank container fleet, including the installation of the latest generation of telematics systems, and for the replacement and expansion of other transport assets, including road tankers and intermediate bulk containers (IBCs).

Hoyer had originally planned an investment budget of €146m for 2020 but, in light of the Covid-19 crisis and its impact on economic performance, this has been revised, with expenditure focusing now only on essential strategic projects. Thomas Hoyer, chairman of Hoyer’s advisory board, says: “Hoyer will remain one step ahead, even in times of crisis. The Executive Board manages prudently and sustainably. That enables targeted investments even in economically difficult times.” These are likely to include a dangerous goods terminal, buildings and technical installations, further expansion of the Smart Logistics concept, state-of-the-art information technology, international business acquisitions and joint ventures, such as the Hoyer Bulk joint venture established last year with Dupré Logistics in the US.

“Thanks to our global presence and strong network, we can meet our customers’ regional and international logistics needs along the supply chain in an optimum way,” says CEO Ortwin Nast. www.hoyer-group.com

HOYER’S MINERAL OIL DISTRIBUTIONS BUSINESSES