The Covid-19 pandemic has sent shockwaves through the global maritime industry and set the tone for a transformed industry and associated supply chains. Thankfully, with the hard work and dedication of our team, we have not only learned to overcome this but have also emerged stronger. We have worked hand in hand first and foremost to ensure the health and safety of all our staff both onshore and offshore. Despite the travel bans, altered work hours and lockdowns, we have adapted and prevailed.
In 2020, Stanford Marine successfully operated a diverse fleet of 40 OSVs across the Middle East, South East Asia and West Africa. Utilization rate was at 77%, and 30 new contracts were secured throughout the year.
Our objective is to maintain a high fleet utilization north of 85% and selectively expand our geographical footprint. Our commitment to further reduce our operational cost in 2021 across the Group companies remains undiminished; higher revenue and lower operational cost is what we are striving for.
The teams’ focus on HSE ensured another year of zero LTIs. This is a significant accomplishment considering the range of difficulties posed by the pandemic and one that highlights the organization’s unwavering commitment to safety. With a large and modern fleet, professional management team and certified HSEQ management systems, which have recently been updated to ISO 45,000 standards, Stanford Marine reaffirms its position as one of the world class players in our industry. These results would not have been possible without the hard work of our teams, both onshore and offshore, whom I would like to thank and salute for their exceptional efforts and work ethic.
Grandweld secured multiple shipbuilding contracts worth $25 Million, mainly for UAE customers.
The ship building business will remain busy throughout 2021 executing the backlog of 8 crew boats expected to be delivered over the course of the year and into 2022. As for ship repair, it is expected to produce a stable performance due to the improved utilization of OSV fleet in the region driving a sustained demand for dockings.
We are proud to continue making positive contributions to social issues such as education, health and wellness, economic development and environmental sustainability in the UAE. Year on year, we continue to support centers and initiatives such as Al Noor Training Centre for Children with Special Needs, the Rashid Pediatric Therapy Centre, and The Angel Appeal. At SMG we believe that such community support improves our social awareness as an organization and benefits those in need.
The year ahead will undoubtedly bring more challenges but with our ongoing commitment and support from our clients, we will continue to work towards our goals.
With our new shareholders onboard, SHUAA Capital, our goal to restructure Stanford Marine’s debt was successfully completed by the end of December 2020.
In summary, I would like to express my gratitude to our strong customer base as we continue to deliver positive outcomes. I would also like to thank the whole SMG team for their continued support and dedication.