Inside information: Aspo has initiated a program to accelerate its subsidiary ESL Shipping’s green transformation

Aspo Plc
Inside information
April 26, 2023 at 9:00 a.m.

Inside information: Aspo has initiated a program to accelerate its subsidiary ESL Shipping’s green transformation

Aspo‘s Board of Directors has decided to initiate a program to support and accelerate ESL Shipping’s low-carbon growth strategy. The environmentally friendly industrial and green energy investments in the Baltic Sea region are tens of billions of euros over the coming years. The green transition will substantially enlarge ESL Shipping’s market and offer significant growth opportunities, and subsequently require new financing models. The aim is to assess a selection of alternative measures, including a launch of a new investment pool of fossil-free vessels, a possible equity injection in ESL Shipping by a minority shareholder, and the sales of the shipping company’s two Supramax vessels. Aspo will in all scenarios remain as a committed majority owner of ESL Shipping. Based on the program, preferred measures will be launched to enhance ESL Shipping’s capacity to execute its ESG-driven strategy, including investments in new fossil-free vessels and technologies. These measures and investments will support ESL Shipping’s target to halve its CO2 emissions by 2030 and reach net zero CO2 emissions by 2050.

ESL Shipping’s ambition is to instrumentally support the ESG-driven transformation of its industrial customers by taking further steps in offering them completely fossil-free sea transportation. ESL Shipping’s strategy is focused on long-term industrial partnerships and on being a forerunner in sustainability. ESL Shipping operates in the handysize and coaster market segments primarily in the Baltic Sea area. Investments in business intelligence improve the operational efficiency of transportations and translate into customer value. The use of new financial instruments, such as pooling of vessel investments, accelerates company growth and improves financial return. ESL Shipping aims to achieve stable and predictable earnings growth, shifting the business model towards an infra-investment profile.

The program and its potential outcome will have no impact on ESL Shipping’s daily operations and aims to strengthen the company’s long-term commitment to its customers and personnel, and enable accelerated investments in fossil free shipping. There is no set deadline for the measures and Aspo will communicate progress and outcome in due course.

"ESL Shipping has already made great progress executing its low-carbon growth strategy that combines investments in the most environmentally friendly technologies with renewed financing solutions. Now we aim to enable the next step on this journey, further strengthening its financial performance, customer serving capability and future positioning.”, says Rolf Jansson, CEO of Aspo Group.

"This is a fantastic opportunity for both ESL Shipping’s personnel and key customers. The main target is to facilitate continued future growth, driven by the green transition.” says Mikki Koskinen, Managing Director of ESL Shipping.

Aspo Plc

Rolf Jansson
CEO

Further information, please contact:
Rolf Jansson, CEO, Aspo Plc, tel. +358 400 600 264, rolf.jansson@aspo.com

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Aspo creates value by owning and developing business operations sustainably and in the long term. Our companies aim to be market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these aiming to be forerunners in sustainability. Aspo supports its businesses profitability and growth with the right capabilities. Aspo Group has businesses in 18 different countries, and it employs a total of approximately 950 professionals.