Message from The CEO

The operations within the Astrup Fearnley 2020 was a stress test for just about every company in almost every industry. As I reflect group can be broadly divided into three areas: on an unprecedented year, one thing is clear — we have all been impacted by Covid-19, both as professionals and private citizens. The global pandemic presented a crisis on a scale many of us have never experienced. From the very beginning of the pandemic, our focus was squarely upon two things:

1) Securing the well-being, health and safety of our employees worldwide, and 2) Steering the company successfully through this unprecedented crisis

I am proud to report that we achieved both, thanks to a collective effort among all our employees and governing bodies.

2020 was anything but easy. The only way to get through such a year is by working together as a team. Therefore, I would like to extend my heartfelt thanks to all our employees. You have demonstrated resilience and shown great commitment in these unprecedented times.

Astrup Fearnley’s revenues correlate with the general activity in the global economy, and particularly with market activities in the shipping, offshore, oil and energy related sectors, which are cyclical by nature. It is a key component of our corporate strategy to continuously explore ways and means to secure a robust income base and limit exposure to market fluctuations.

Broadly speaking, the market conditions for our core sectors were impacted in the first half of 2020 of the outbreak of Covid-19, and the uncertainties caused by the pandemic in global markets. Despite these unprecedented events, 2020 ended with another strong year for our shipbroking activities in Fearnleys. Within financial services and investment banking, Fearnley Securities managed also to deliver positive results for the full year, as the second half of 2020 showed significantly more active market conditions, especially within renewables. Through a targeted strategic approach over the last years, Astrup Fearnley’s brokerage units were able to participate in numerous transactions in Norway, and abroad, within green, sustainable energy industries. During the year, we further developed our research product, to become industry leading within renewables - supporting our clients with unique intelligence about green, sustainable industries.

2020 was another challenging year for the offshore industry. Both owners of offshore support vessels and offshore drilling rigs experienced another year dominated by refinancings, restructurings, and Chapter-11 processes. Notwithstanding continuing market volatility and cyclical fluctuations, our fundamental belief in the offshore sector remains positive. Despite the challenging market environment, both Fearnley Offshore Supply and Fearnley Offshore were able to deliver positive results in 2020.

In parallel with the Group’s focus on renewables, our commitment to shipping and offshore remains strong and is a bedrock of Astrup Fearnley’s DNA. Our fundamental belief in maritime and energy related industries remains firm, and we will continue to develop our offering in these verticals – while maintaining and nurturing our strong culture, committed to relevance, integrity among employees and a team-based working environment. We will also continue to seek out opportunities to further offer our clients the benefit of the unique combined expertise and experience of the broader Astrup Fearnley Group.

2020 was anything but easy. The only way to get through such a year is by working together as a team. Therefore, I would like to extend my heartfelt thanks to all our employees. You have demonstrated resilience and shown great commitment in these unprecedented times.

We enter 2021 with a robust balance sheet, deep customer relationships, a strong brand, and well-positioned businesses.

Thank you for your interest and trust in our firm. I welcome your thoughts.

Sincerely,

Even Matre Ellingsen CEO, Astrup Fearnley Group