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DECARBONISATION

DECARBONISATION

Economic conditions may be challenging, but paint manufacturers have been posting strong financial performances

POSITIVE

PERFORMANCE

Paint manufacturer Jotun registered increased sales volumes and good growth performance during the first half of the year, with operating revenue up 22% against figures for the same period last year despite the challenging conditions.

“We are satisfied with the development. It is great to see that the marine newbuilding market has recovered after a difficult period. We also see sales improving within ship maintenance products, protective coatings and decorative paints”, president and chief executive Morten Fon says.

According to the company, the positive development comes in a time of major global challenges. The war in Ukraine is affecting the raw material markets and creating an energy crisis in Europe. In addition, there are persistent challenges in global supply chains.

“The geopolitical imbalance puts international trade under pressure. However, our people have handled the demanding situation well”, Fon says.

Consequently, costs have increased. Even though Jotun’s operating profit rose to NOK2,653m, the operating margin came in below the level seen last year.

Going forward, Jotun expects continued sales growth. The high raw material prices will still be a challenge. However, there are signs that raw material prices have now peaked and started to ease. In addition, challenges related to the war in Ukraine, the energy crisis, the global supply chain issues, and the covid-19 pandemic persist.

“The world around us is characterised by unrest and uncertainty. However, our organisation is robust and intact, and we are ready for continued growth,” Fon says.

I-TECH EARNINGS ON THE UP

Third quarter earnings at I-Tech were also positive, according to chief executive Philip Chaabane

“The third quarter sets a new high for revenue and earnings for a single quarter. The growth in the quarter stems above all from an increased demand in the wake of the multitude of product launches that

took place during the pandemic. I note that our largest customer is now increasing demand in a way that is more comparable to the time prior to the pandemic, this being about a year after a series of product launches for the Asian market.

“The inventory problems that we have previously seen therefore appear to be in balance as far as the key markets are concerned.”

Unlike the previous quarter, which had a broader customer mix, the majority of the growth during this period is derived from a balanced increase in both the Asian maintenance market as well as newbuilding market, Chabanne suggests.

“Asia completely dominates the shipbuilding industry for both newbuilding and maintenance and recent product launches, mainly from our largest customer, are providing use in both segments.“

The recent upswing for Selektopebased products in key markets is vital and Chabanne says he is confident on how the market will develop going forward.

At the same time, there is a potential in Europe that has not yet been realised, he says. This derives from a vast backlog of administrative work from authorities, as a consequence of new legislation in 2012 regarding, among other things, antifouling products containing biocides.

“While the road towards the EU and US markets requires a large portion of endurance, we are pleased about the more stable and favourable conditions, particularly in Asia, where all markets show high occupancy in both newbuilding and maintenance.

“The integration of Selektope as a building block in multiple product launches is continuing. As growth now picks up for the second quarter in a row, confidence is increasing that pre-launch tests have shown good results and are now driving demand in the pursuit of a more efficient shipping industry with lower carbon footprint.”

I-Tech ‘s product Selektope contains an active agent that prevents barnacle attachment on submerged surfaces such as ships and boat hulls, but also other marine installations. By increasing the resistance to barnacle growth in marine paint systems (e.g. antifouling coatings), fuel and maintenance costs are reduced. I-Tech has obtained the necessary regulatory approvals for Selektope and has several of the world’s largest manufacturers of marine antifouling coatings as customers.

KEEPING CLEAN COUNTS

The importance of maintaining a smooth and clean hull free from biofouling has been outlined in a new report from the International Maritime Organization (IMO).

The report, Analysing the Impact of Marine Biofouling on the Energy Efficiency of Ships and the GHG Abatement Potential of Biofouling Management Measures, highlights that a layer of slime as thin as 0.5mm covering up to 50% of a hull surface could trigger an increase of greenhouse gas (GHG) emissions in the range of 25-30% depending on ship characteristics, its speed and other prevailing conditions. These percentages can be much higher for more severe biofouling conditions, depending on the type of ships and other parameters.

In addition to analysing the impact of biofouling on ship efficiency and how current industry practices for biofouling management impact ship efficiency, the study presents results from seven scenarios (or anti-fouling strategies) in relation to a reference (“always clean”) of a target vessel (bulk carrier), between dry-docking periods.

These results demonstrate the magnitude of fuel, CO2 and cost savings that can be achieved by keeping this ship as clean as possible from biofouling. Biofouling management is one important contributor to the overall operational efficiency of ships and should be considered by shipowners to achieve IMO’s Carbon Intensity Indicator (CII) rating indicator that measures vessel carbon intensity over time. Download the full report at: tinyurl.com/IMOReport BOOMING MARKET

According to a study by MarketWatch, the growth of the marine antifouling paints market is set for expansion. In comparison to 2021, the market will spike in terms of revenue over the next seven years.

The marine coatings market size is set to grow by US$4.25bn from 2020 to 2025, progressing at a CAGR of 6.73% according to Technavio. Also, the market recorded a 4.5% year on year growth rate in 2021.

The marine coatings market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market. Akzo Nobel NV, BASF SE, Baril Coatings USA, Chugoku Marine Paints, Endura Coatings, Hempel AS, Nippon Paint Holdings, Orkla ASA, PPG Industries Inc, and The SherwinWilliams Co are some of the major market participants.

UNDERWATER COATINGS

Reducing environmental impact and operating costs are a major focus for shipping companies globally. Selecting the right underwater coating technology is critical in reducing costs and environmental impact, while maintaining vessel efficiency.

Hamburg-based Pronav Ship Management operates a fleet of several liquefied natural gas (LNG) carriers, including four Q-Flex LNG vessels and two conventional, 145000m3 capacity LNG vessels. All six vessels are coated with Intersleek biocide-free technology.

By using Intersleek technology, the environmental impact of these vessels has been significantly reduced compared with similar vessels coated with biocide-containing technology. An evaluation of the reduction in paint volume, volatile organic compound content and biocide release was completed and the results are summarised below for the six vessels.

Utilising biocide-free technology also reduces exposure of personnel during coating operations and minimises cost and time in drydock due to the reduced number of coats. Another operational benefit of this advanced coatings technology.

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