May 2011

OCEANS OF KNOW-HOW

Financial results 2010 · New skills for experienced officers · Dangerous passage · A boy’s dream come true · Streamlining JL procurement · Big show in Rio · A glittering night at the Dorchester · No end to education · Lauritzen Kosan fleet renewal · Working with a Chinese shipyard · East meets West · Reorganisation for Lauritzen Offshore · Staff News

New skills for experienced officers

3

4

6

8

10

12

13

14

15

16

17

18

20

20

21

22

23

24

2

Editorial

Financial results 2010

New skills for experienced officers

Dangerous passage

A boy’s dream come true

Streamlining JL procurement

Big show in Rio

A glittering night at the Dorchester

No end to education

Lauritzen Kosan fleet renewal

Working with a Chinese shipyard

East meets west

Lifetime achievement award

Anders Kartik Jensen won’t stop

running

J. Lauritzen Singapore celebrates

Reorganisation for Lauritzen Offshore

Staff News

JL attends royal WWF charity dinner

2

Dear Reader, Rapidly accelerating globalisation and technological change, political unrest, natural disasters, piracy, and world economic uncertainty combine to make business operations unprecedentedly complex and challenging for shipping corporations.

On that background, I am pleased to report that JL’s financial results for 2010 were better than expected and satisfactory (see article on page 4-5).

At year-end 2010, JL’s invested capital had increased by a factor of more than six since 2004 and will further increase in 2011 with the completion of the current investment programme. A remarkable growth has thus been achieved simultaneously with JL’s ability to maintain solid key financial ratios.

In 2011, JL will take delivery of a significant number of newbuildings for all our business units. This is also a challenging task, and I would like to express my appreciation to JL’s entire organisation for its dedication to go the extra mile that is required for such an expansion of our activities.

It is anticipated that seaborne trade will continue to grow in 2011, although most likely at a moderate pace. Due to the aforementioned uncertainties, but also to the risks of oversup-ply of tonnage capacity in different shipping segments, volatility will most likely be a dominant condition that will influence shipping markets in 2011 and in the years to come.

In April 2011, JL secured a longer-term contract with Brazilian Petrobras for Lauritzen Offshore’s technologically advanced Accommodation and Support Vessel, Dan Swift. With Dan Swift and three shuttle tankers (two of which are to be delivered in 2011) employed for the Petrobras group, one of the biggest energy corporations in the world, Lauritzen Offshore has not only fulfilled the initial part of its strategy, but has also estab-lished itself as a respected player in the highly demanding offshore services industry.

JL has recently strengthened its corporate management team and with promotions and the enlargement of JL’s Executive Committee, which serves as the coordinating forum for the day-to-day management of the JL Group, I am confident that we have the right team in place to handle the challenges ahead of us (see article on page 23).

Well into 2011, I would like to express my thanks to all customers, partners, colleagues, and friends for your support and cooperation throughout the past year.

Sincerely,Torben Janholt President & CEO

Torben Janholt, President and CEO

3

Satisfactory results in uncertain market • Themarketforoffshoreaccom-

modationsawarisingnumberofnewemploymentopportu-nities,althoughtheApril2010wellincidentintheGulfofMexicoputthewholemarketintofluxforsometime.

• Freightratesforproducttank-ersheldupreasonablywellduringthefirstquarterbutingeneral2010provedtobeanotherdisappointingyear.

Result for the yearIn a year characterised by global economic uncertainty and the sustained risk of overcapacity in major shipping segments, results were better than expected and satisfactory considering the global financial situation. Net results amounted to USD 131 million in 2010 compared to USD 75 million in 2009.

The improvement was primarily related to enhanced market conditions for bulk carriers, counterparty settlements, increased capacity due to newbuildings delivered to

the fleet, and profits from two offshore units, which both had their first full year of operation in 2010.

Return on invested capital was 10.2% compared to 6.1% in 2009. Return on equity was 11.1% compared to 6.9% in 2009. The solvency ratio was 52% and thus unchanged compared to 2009.

JL continued to implement the growth strategy and investment programme it initiated in 2004. During the year, JL took delivery of six bulk carrier newbuild-ings, three product tanker newbuildings, and one fully pressurized gas carrier newbuilding. In addition, six bulk carrier newbuildings were taken on long-term time-charter.

Total vessel days increased to more than 54,300 in 2010, up 6% from about 51,000 in 2009.

Due to significant fleet renewal and expansion efforts in recent years, JL owns a modern, efficient fleet of bulk carriers with an average age of 1.5 years; gas carriers

Globalindustrialproductionbot-tomedoutduringthefirstquarterof2009andhasgrownsincethen,althoughataslightlyreducedrateinthesecondhalfof2010.Thistakentogetherwithstronglyrisingcommoditypriceswhichinducedmanybusinessestoapplyamorecautiousrawmaterialsbuyingpolicy,resultedinreducedgrowthindemandforseabornetrade.Asmostshippingmarketsreceivedlargevolumesofnewtonnage,freightmarketsinmanysegmentsweakenedduringtheyear.ThefollowingcharacterisedJL’smainmarketsin2010:

• Afterverystrongperformanceinthefirsthalfof2010,freightratesforbulkcarriersstartedadeclinethathascontinuedinto2011.Volatilityremainedveryhigh.

• Consideringthestateoftheworldeconomy,freightratesforsmallergascarriersweresatis-factorywithageneralupwardtrendduringmostoftheyear.

“In a year characterised by global economic uncertainty and the sustained risk of overcapacity in major shipping segments, results were better than expected and satisfactory considering the global financial situation.”

Birgit Aagaard-Svendsen, Executive Vice President & Chief Financial Officer

Key figures USDm Full year 2010 2009Turnover 718.8 482.9 EBITDA 252.2 134.9 Profit and loss on sales of vessels (12.5) 17.0Depreciation (53.2) (76.4)Operating income (EBIT) 186.5 75.6 Net result in joint ventures 11.0 17.0 Result of financial items (56.3) (16.5)Tax and minorities (10.6) (1.4)JL’s share of the result 130.7 74.6 Non current assets 2,062 1,671 - hereof vessels under construction 663 445Net investments 320 442Profit margin 26% 16%ROIC 10% 6%Solvency ratio 51% 51%ROE 11% 7%Fleet (full year average) 149 140 - hereof fully-owned vessels 40 32Average no. of employees 1149 940

4

average 9.6 years (including ethylene gas carriers at 2.9 years); product tankers 2.3 years; and offshore support vessels six years. During the year, Lauritzen Tankers joined the newly established product tankers pool led by Hafnia Management as a partner, and JL expanded its presence in Asia by strengthening its commercial and operational organisations in Singa-pore, Shanghai, and Tokyo.

The controlled fleet averaged 149 vessels compared to 140 vessels in 2009, of which 40 were wholly-owned vessels (32 in 2009).

InvestmentsAt year-end, the invested capital amount-ed to USD 2.0 billion compared to USD 1.8 billion year-end 2009, and JL’s asset base had increased by a factor of more than six since 2004, when the current expansion programme was initiated.

During the year, JL’s investment in fleet expansion totaled USD 536 million compared to USD 534 million in 2009. Divestments of vessels and other assets

amounted to USD 216 million compared to USD 92 million in 2009.

At year-end 2010, JL’s newbuilding portfolio comprised a total of 29 wholly owned vessels, including 15 bulk carriers, five gas carriers, seven product tankers, and two dynamically positioned shuttle tankers for delivery 2011-13. JL will also be taking delivery of ten long-term time-chartered newbuildings, and partners will commit another eight newbuildings to the fleet controlled by JL.

The investment programme represented a total cost of USD 1,427 million at year-end 2010 (USD 1,656 million in 2009) of which 46% had been prepaid by own funds.

OutlookIt is the general sentiment that economic growth will continue in 2011, albeit slightly less briskly than in 2010. This implies further growth in seaborne trade in 2011, although most likely at a moderate pace.

Output of new ships is anticipated to be at approximately the same level in 2011 as

in 2010, which is below scheduled orders due to slippage and non-performance. A reduction in new deliveries of MR product tankers is anticipated, whereas deliveries of dry bulk carriers and smaller gas carriers are expected to level out. Demolition is expected to increase due to a combination of rising scrap prices and trading pressures in most markets.

In early 2011, a sizeable part of forecast revenues are secured by contracts.

Net results for 2011 are expected to be significantly down from 2010 primarily due to one-offs included in the 2010 results, including settlements and the reversal of write-downs (USD 73.8m in total), changed employment pattern for the Accommodation and Support Vessel, Dan Swift, lower earnings from the Capesize bulk carrier segment, and counterparty defaults in early 2011. In addition, recent developments in the Middle East and North Africa as well as Japan may impact upon world economic growth and international seaborne trade.

Satisfactory results in uncertain market

Invested capital year-end, USDm

JLLB LK LT LO

20092010

2200200018001600140012001000

800600400200

0

Bulk

Result before tax

Gas Off-shore

Tank Taxa.o.

Resultfor theyear

20092010

Results for the year, USDm

200

150

100

50

0

-50

-100

180

120

150

30

60

90

02009 2010

Owned Part owned

CharteredShared charter

Other

Average number of vessels

For further details on JL’s 2010 Annual Report, please visit our website: www.j-l.com

5

JL’s reefer business, until a few years back a major operating unit, is a thing of the past for the company. Offshore oil services, served by dynamically positioned (DP) vessels such as shuttle tankers and the Dan Swift, Lauritzen Offshore’s one-of-a-kind accommodation and support vessel, hold big potential for growth. One constant amid the change is the need for experienced, talented officers. “It is es-sential to find DP-qualified officers,” says Claus Tommerup, LO’s head of maritime personnel, “so it was a natural move for us to set up a retraining programme to move officers from reefer vessels to shuttle

tankers. Many of these officers have been with JL for decades. They are proven offic-ers who know the JL systems and culture. The retraining programme is intensive and expensive, but we believe it will more than pay for itself in terms of company loyalty and a high officer retention rate.”

A long roadThe need is pressing, as in addition to the shuttle tanker already in service under contract to Petrobras in Brazil, two more are scheduled for delivery in 2011. Brazilian visa requirements neces-sitate selection of officers and crew well

before the vessels go into service. Officers retrained as DP operators have to receive a certificate from the Nautical Institute in London. The road to that license is documented by each officer in a logbook, which is submitted to the institute for approval. Consider that it takes about 72 weeks (including leave time) to retrain deck officers/DP operators – reduced to 28 weeks for engineers and electricians, who must be highly trained and compe-tent but not formally licensed – and it’s easy to understand why Claus Tommerup began setting up the programme nearly three years ago. “As things stand now, we

New skills for experienced officersAs technical management contracts for reefer vessels formerly owned by JL expire and vessels are returned to their owners, JL taps a valuable resource by retraining experienced officers to serve on dynamically positioned shuttle tankers.

6

“It is a tough and demanding pro-gramme, but the officers are really keen to make the move, get the train-ing and licence, and stay with the com-pany – I experience that every day.” Claus Tommerup Head of Maritime Personnel, Lauritzen Offshore

plan to train 27 internal officers from the reefer and tanker fleet and to supplement them with some external hires,” he says.

The entire programme is divided into six-week segments, which include tanker courses, basic and advanced DP courses, and two stretches of sea time (as supernumerary) for tanker and DP familiarisation. Officers coming from reefers must get a tanker license, which takes about three months’ sea time. This can be accomplished simultaneously with the DP sea time requirement if done on a DP tanker, like Lauritzen Offshore’s shuttle tankers. The 72-week total can be reduced to 60 weeks by taking two

“DP reduction” courses, which involve intensive simulator training at Maersk Training in Svendborg, Denmark. “It is a tough and demanding programme,” says Claus Tommerup, “but the officers are really keen to make the move, get the training and licence, and stay with the company – I experience that every day.”

Return on investmentThe training is also a serious commitment on JL’s part as the total cost of the pro-gramme for 27 officers amounts to about DKK 10 million, including wages and course fees. According to Claus Tommerup, it is a big investment but well worth it in terms of experience, loyalty, and officer retention. The other major investment in the programme has been many hours of work on the part of Claus Tommerup and his colleagues in the maritime personnel department. Planning the actual training, while complex, is only the beginning; there is also a welter of complex scheduling, timing, and coordinating encompassing details such as leave time, payroll, and visas. Their reward for a job well done? Doing it all over again in four years when the training courses expire and another round of retraining begins.

• Master/DPO

• ChiefOfficer/DPO

• 2NDOfficer/DPO

• 2NDOfficer/DP

• ChiefEngineer

• 2NDEngineer

• Electrician

Other crew require conven-tional product tanker skills

DPshuttletanker positions requiring special qualifications

7

Dangerous passage

According to the International Maritime Bureau, Somali pirates captured a record 1,016 hostages in 2010 and currently hold 32 vessels and 746 crew members of various nationalities after hijacking another six ships in January this year.

Despite patrols by an international flotilla of modern warships and drones patrolling the Indian Ocean off the east African coast and Arabian Gulf, Somali pirates continue the pattern of attacks on commercial shipping first covered in Lauritzen News two years ago. This poses a serious threat to all commercial shipping, including J. Lauritzen vessels. Several Lauritzen Kosan vessels have sailed through the area in recent years, and in September 2010 Lauritzen Tankers’ Freja Atlantic passed through the Gulf of Aden. Captain Gunnar Christensen comments on the experience.

8

“We were travelling at the end of the monsoon season and the piracy attacks were increasing which made a naval escort seem like a good idea. Our minds were made up when we learned that a vessel some days ahead of us had been attacked.” Gunnar Christensen

Captain, Freja Atlantic

What is the general situation like? Has it become worse than in previous years?As we have all read in the news, the situ-ation in the Gulf of Aden has become worse. The pirates are present throughout practically the whole Indian Ocean. A sure sign of the seriousness of the situation is that we are now allowed to engage armed guards for a passage, which is something new for Danish vessels.

What kinds of precautions do you take to avoid being boarded? Passing through the Gulf of Aden, we took a number of precautions to prevent pirates boarding the ship. These included stringing two coils of barbed wire along the vessel’s railing, one outside and one inside. This would definitely be a deter-rent to boarders, as the Chinese-made barbed wire proved to be very sharp, cutting right through the work gloves of the installation crew.

We also kept a continuous flow of water over the deck, positioned brackets to hold fire hoses in place in case they had to be used to repel pirates, and dismantled outside ladders and placed them on deck. During the period before the passage we held a number of security exercises and tested our Ship Security Alarm System, especially the notification addresses inside the system as well as a direct address to contact the naval forces operation centre. And during transit we posted a double lookout watch.

All precautions are planned in close cooperation with the technical manager’s security officer and by observing proce-dures in the Best Management Practice issued by various organisations. Precau-tions are also strengthened through the security flash and a close monitoring of NATO force’s and MSCHOA’s (Maritime Security Centre-Horn of Africa) websites.

What are the external support systems you can depend on?We had a range of contact and support with various organisations as the Freja Atlantic neared dangerous waters. As soon

as we passed south of India, the technical managers were informed and precautions agreed upon. When we passed latitude 10S in the Indian Ocean, we registered with MSCHOA and reported our posi-tion on a daily basis. As we approached the Gulf of Aden these reports became more frequent, and we contacted the security organisation of the technical manager every six hours. Also, we were always able to make contact with various naval forces in the area. What was the experience like, and what decisions did you have to make along the way?Probably the most important decision was determining whether taking part in group transit with a naval convoy would be the best option. We were travelling at the end of the monsoon season and the piracy at-tacks were increasing which made a naval escort seem like a good idea. Our minds were made up when we learned that a vessel some days ahead of us had been attacked. In agreement with the security organisation of the technical manager, we slowed down and waited for the next naval convoy, in this case led by an Indian naval vessel.

The Freja Atlantic joined the convoy on September 16 about noon and cleared on September 18 about 0400. While sail-ing in the convoy we heard about some incidents taking place, and in the early morning on the 17th the Indian destroyer broke from the convoy in order to inves-tigate a suspicious vessel which turned out to be a fisherman. After clearing the convoy, we sighted a few skiffs, but none of them closed with the Freja Atlantic. We had only one incident in which we activated the fire hose self-defence system to spray water over the side. Altogether, the convoy worked very well. The Indian

navy did a good job: the destroyer waited until the booked convoy was ready, escorted us at maximum speed for the slowest vessel, and extended their voyage time to accommodate us.

What is the effect of the pirate threat on shipping schedules and costs?Recent news reports have stated that piracy has substantially increased the cost of shipping in the Indian Ocean. It has also caused a decrease in traffic through the Suez Canal. Piracy definitely has an effect on schedules, especially if vessels decide to join a naval convoy. For the Freja Atlantic it meant a 29-hour delay to adjust for the Indian convoy. However, despite the delay, this experience left me with no doubt that the best way of transiting the Gulf of Aden with a slow and heavily loaded vessel is to join a convoy guarded by naval forces.

9

A boy’s dream come true

About the Noona Dan

In order to make costal surveys of Greenland, Noona Dan was bought in 1956 as an addition to J. Lauritzen’s three-vessel polar ship division.

Specifications• Type:Gaff-riggedketch• Built:1939,atJ.RingAndersen

Wharf in Svendborg• Length:118ft.• Width:22ft.• Draft:10ft.• Mainmast:80ft.• Sailarea:3575sq.ft.• Engine:VolvoPenta,290HP

Expedition modifications• 6bunksforcrew• 6bunksforscientists• Laboratory• Darkroom• Galleyandmessroom

Where is Noona Dan today?• SoldtotheGermanSchoolShipAssociationin1963• Since1973theshiphasbelongedtoCLIPPER–

German Youth Work at sea10

Whenever Hakon Mielche, Jens Bjerre, or other well-known Danish explorers visited the town where I grew up, I was sure to be among the audience, dreaming that one day I would be one of them – explor-ing the world. And I did what I could to make it happen. In 1956 I joined the J. Lauritzen Seamen’s Academy in Kogtved, Svendborg, as a deck apprentice, with the aim of one day becoming a captain. But after a year at the academy, when I had to get my papers for going to sea, I failed my eye test, and my world fell apart.

As I still wanted to go to sea, I took up the job of cook apprentice – which later turned out to be to my advantage. Because of my basic deck education, I was able to get some interesting assignments within J. Lauritzen, including a berth aboard the Kista Dan on an Antarctic expedition led by Vivian Fuchs, the British polar explorer, who the year before had crossed the South Pole together with Edmund Hillary. Then I discovered that J. Lauritzen was to play a major supporting part in the planned Noona Dan expedition.

The voyage of a lifetimeI realised from the start that this could be the voyage of a lifetime, and that my connection with J. Lauritzen had put me in the right place at the right time. The purpose of the expedition – developed by a group of scientists, members of the Adventurers’ Club of Denmark, and the University of Copenhagen – was to col-lect and document species of small animals, reptiles, birds, insects, and plants, as well as to accomplish geo-graphical surveys and ethnographical studies. The area of investigation was to be the chain of islands stretching from the Philippines to New Guinea and the Salomon Islands. The planned route was: Denmark, the Canary Islands, the Panama Canal, the Marquises Islands, the Fiji Islands, the Philippines, the main area of investigation, Indonesia, Ceylon, the Suez Channel, the Mediterranean, and back to Denmark.

J. Lauritzen volunteered to donate the Noona Dan, including a crew of six, free of charge to the expedition. She set sail fifty years ago, on 10 April 1961, from Langelinie quay in Copenhagen. The six-member crew included the captain, the mate, two able-bodied-seamen, one engineer, and me as cook and deckhand. The expedition also included a team of six scientists. My task, among others, was to cook for the crew and scientists and to take care of supplies, as well as other practical details, for land-based operations.

A continuing adventureIt would require a book to tell all of our adventures during those 20 months, but here are some impressions: long, fine days at sea – typhoons in the Indian Ocean – cannibals – remote islands – pirates – diseases – military coups – shooting – conflicts – fights – catching sharks by hand –witchcraft – poisonous snakes on deck – swimming with crocodiles – mountain climbing – and, not least, great friendships. It sounds like a fantasy, but as a missionary we met on an island in the Zulu Sea said to us in a similar context: “It is true, it is really true, trust me!”

After 20 months and more than 50,000 nautical miles (80,000 km), the Noona Dan returned to Langelinie on 11 De-cember 1962. To date, more than 150 Noona Dan reports and theses have been produced by the University of Copenha-gen, and at least as many international studies have been published. New articles based on the expedition continue to appear. As for me, at the age of 72 I see the Noona Dan expedition and my time with J. Lauritzen as a great formative period of my life. You might say I never got over it. I am still travelling and exploring the world, a boy’s dream come true.*

*Manuscript emailed from the Turks and Caicos Islands in the West Indies.

Fifty years ago, on 10 April 1961, the Noona Dan – donated by J. Lauritzen and fitted out for scientific exploration – sailed from Langelinie quay in Copenhagen to begin a 20-month round-the-world voyage. It has been called one of the two Danish expeditions most important to world exploration. Svend Kirkegaard was a 22-year-old deckhand and cook, one of a crew of six.

Svend Kirkegaard

Life after the Noona Dan expedition

• Extendedmilitaryservice,special assignment

• Marriedfor47yearstoHanne Sophie (who fortunately shares the urge to travel)

• Twochildren

• 35yearsofemploymentwithin the Danish interna-tional marine and agricul-tural industries, covering countries including Kenya, Argentina, Turkey, Namibia, Angola, South Africa, and Denmark

• Retiredatage63fromapositionasMDofamajorDanish fishing company, to explore the world at leisure

• Nextplannedadventure: a journey down the mysterious Rio San Juan from Lake Nicaragua to the Caribbean Sea

11

Until just two years ago purchasing was handled through Lauritzen Fleet Manage-ment (LFM). When LFM was dissolved, many of its company-wide responsibili-ties – such as the technical department, crewing, and quality assurance – were merged into JL’s different operating units. Purchasing, and head office services remained as independent departments. JL’s bunkers purchasing operation had also traditionally been independent, but in March 2010 it was decided to combine these various purchasing functions and create a consolidated procurement depart-ment headed by Henrik Steffensen, vice president and head of purchasing.

Centrally co-ordinated operationsThe result, says Henrik Steffensen, “is a much more streamlined approach to JL’s overall procurement requirements, with all our purchasing functions centrally co-ordinated and various responsibilities divided into four areas: bunkers, techni-cal purchasing, travel, and head office services.” Head office services – headed by Kim Madsen – is, among other things, responsible for the JL canteen, so no more needs to be said about which of the four

purchasing areas is most important to the company’s well being. Technical purchas-ing – headed by Henning Andersen – is responsible for a wide range of fleet supply functions, from spare parts and consuma-bles to transit-warehouses in Copen-hagen, Rotterdam, and Seoul – and its thousands of purchase orders and many contracts make for an annual expenditure of hundreds of millions DKK.

Bunkers is the area, however, that reaches right to the heart of JL’s core shipping operations, and certainly takes the prize for global reach and complexity. This unit of just three employees and one trainee handles worldwide fuel purchas-ing for internal business units, associated companies and even some major external companies. Bunker purchases in 2010 amounted to several hundred million USD, not including the cost of five million litres of lubricants purchased globally. As Lauritzen News reported in an article four years ago, bunker purchasing is like a giant game of three-dimensional chess with a fleet of ocean-going vessels as pieces, and the entire globe as a board. A game whose moves often depend on largely unpredict-

able factors such as the effects of politics, stock market swings, and the weather.

New management in bunkersPeter Sørensen, who headed JL’s bunker activities since 1991, has retired, and Claus Kesting has taken over manage-ment of the fuel-trading activities. If anything, he says, the bunkers chess game has grown even more complex. “Inter-national regulations are tougher than ever, and in many ports availability of fuel is tighter,” he says. “But the biggest challenge is that everything moves faster than ever before. Everything happens in real time, so that any micro-economic development – like new unemployment figures from the US – can have a nearly immediate effect on bunkers prices and on what we do. We have to make sure we have the tools we need to stay on top of these developments. My ambition is to streamline bunker operations with new technology and ideas to serve our customers better. We are working on a new bunker management system that will help us achieve these goals by linking us directly with our internal business units – it should be available this summer.”

Reorganisation has produced a procurement department that handles everything from building maintenance, travel, and head office service to global bunker services.

“Myambitionistostreamline bunker operations with new technology and ideas to serve our customers better.” Claus KestingBunkers Manager, JL Procurement

Streamlining JL procurement

From left: Martin Brodersen (bunker purchaser), Claus Kesting (bunker manager), Anel Medina (assistant).

Photo by Ulla M

unch-Petersen

12

From left: Ib Hansen, Vice President, Lauritzen Offshore; Michael Kristensen, Vice President, Lauritzen Offshore; HRH Prince Joachim; Ole Svendsen, General Manager, Lauritzen Offshore Services.

A leading oil and gas industry event in Latin America, the Rio Oil & Gas Expo and Conference takes place every two years at Riocentro Convention Centre in Rio de Janeiro. It is a fitting location as Rio de Janeiro State accounts for 80% of the oil produced in Brazil, a country with some of the world’s major reserves. These reserves have provided a growth opportunity for Lauritzen Offshore which has one shuttle tanker under contract with Petrobras, Brazil’s state-owned oil company, with two more to come in 2011. Additionally, the accommoda-tion and support vessel Dan Swift has just finished a contract with Statoil in Brazil. Efforts are being made to employ her within Brazil, but in the intervening period until a contract can be concluded

overseas Lauritzen Offshore secured an interim contract for the vessel working for Shell in Nigeria.

National presenceThe Rio Oil & Gas Expo is literally a big deal, covering 122,000 square metres, with 930 exhibitors. Denmark had a major presence with an exhibition area of 296 square metres and 21 exhibitors. Close to 60,000 people from 51 countries attended the show over the course of four days – including Denmark’s Prince Joachim who spent time at the Lauritzen Offshore booth, and, according to Ib Hansen, vice president of Lauritzen Off- shore, was well informed about Denmark’s participation and Lauritzen Offshore in particular.

New contacts“We didn’t participate in the show with the idea of winning major new contracts,” says Ib Hansen, “but we did make numer-ous new business contacts from inside and outside Brazil, in both the marine service and oil sectors. The big hit of our exhibition area was a large model of the Dan Swift which attracted large numbers of people every day, including a group of fascinated cadets from Brazil’s marine academy. It is nice to see that we already have the attention of the next generation.”

Big show in RioLess than a year after opening an office in Brazil, Lauritzen Offshore participated last September in the 2010 Rio Oil & Gas Expo and Conference.

13

Let us set the scene with words from Lloyd’s List’s own website, which describes the 2010 Lloyd’s List Global Awards cere-mony as a “glittering night” at London’s Dorchester Hotel on 29 September 2010. A ceremony at which “more than 500 at-tendees, high-profile guests and celebrity speakers ensured that the evening pro-

vided entertainment, networking, and much celebration.” The description may sound a bit over the top, but accord-ing to Erik Møller, project manager of Lauritzen Offshore Services, it is right on the money. “Even the scene outside the hotel was a little unreal, with the streets full of Lamborghinis and Bugattis and

the black-tie crowd streaming into the show,” says Erik Møller. “The ceremony itself was as well run as the Oscar awards with excellent speakers and a British mem-ber of parliament as keynote speaker.”

Combination hotel, shipyard, and heliportAll the more credit to J. Lauritzen as this is the second time in three years that the company has competed as a finalist at the Lloyd’s List awards ceremony, after win-ning Ship of the Year for the gas carrier Isabella Kosan in 2008. The Dan Swift is Lauritzen Offshore’s advanced accom-modation and support vessel, converted from a ro-ro/cable layer ship at Blohm & Voss in Germany. Representatives from Blohm & Voss also attended the award ceremony. The Dan Swift is the first dedi-cated mono-hull accommodation vessel in the high-end offshore accommodation segment – able to serve as a combination hotel, shipyard, and heliport. Sophisti-cated DP2 dynamic positioning systems, powerful thrusters and a unique dual gangway enable the Dan Swift to extend the borders for offshore support vessels.

Dan Swift was runner-up for the Lloyd’s List 2010 Ship of the Year Award, which acknowledges outstanding technological achievements, innovation, operational efficiency, safety, and environmental protection.

“J. Lauritzen is very proud to be nominated for this prestigious award for the second time in three years, and it illustrates our efforts to provide cutting-edge ship design and technology. The nomination is also a welcome recognition of our dedication to serve our customers and business partners by providing leading solutions and services within the highly demanding offshore sector.” Anders MortensenExecutive Advisor, J. Lauritzen

A glittering night at the Dorchester

14

”Emphasis on competency and career de-velopment goes far back in JL,” says Tove Elisabeth Nielsen, senior vice president and head of Corporate Human Resources, “but it is stronger than ever today. Un-like many companies, we did not cut back during the recent financial turmoil. The pace of change in our industry is increasing all the time, and international shipping is becoming more complex and capital intensive, imposing new demands on our employees’ professional and personal competencies. So continuous competency development is the key to keeping up – for JL as a company and for all of us who work here. For many years now, JL has conducted annual internal surveys through external consultants to evaluate our organisation. This allows us to compare JL with a base of 5,000 other companies to see what our strengths and weaknesses are and where we need to improve and where to plan future action.“

Developing managers into leadersEnsuring leadership continuity is a chal-lenge facing any company which is why JL recently instituted an internal manage-ment and leadership programme. Tailor-made by a leading Danish consulting firm, the year-long programme is made up of a series of five modules of two to three days each with lecturing professors from inter-national business schools, such as IMD, INSEAD and London Business School. So far, two groups – one in 2008 and one in 2010 – have completed the programme. Participants, who join the programme by invitation, have included managers from Copenhagen and from JL’s overseas offices in Shanghai and Singapore.

It is an intensive process, and prior to enrolment participants undergo a “360-degree survey” – with feedback from superiors, employees, and peers – to assess their strengths and weaknesses.

“This is an advanced programme,” says Tove Elisabeth Nielsen. “An entry requirement is to be a middle manager with a minimum of three to four years of experience, and preferably to have already completed an external leadership programme. In addition to the value of being exposed to the latest thinking by prominent experts, going through the programme together builds personal con-nections among participants that will help them work together in years to come.”

Flexible programmesManagers are by no means the only focus of skill development within JL. There is a great deal of flexibility in developing individual and group programmes, often tailor-made to fit JL’s demands. “We are currently working with a consulting firm to put together a course on negotiating techniques for a group of senior employ-ees,” says Tove Elisabeth Nielsen, “and recently we ran a programme within project management. An individual ac-tion plan might also include a request for secondment to one of JL’s overseas offices. We typically try to meet these requests, although we may have to wait for a year or so until a vacancy opens up. All of this is done in close dialogue and cooperation with JL’s business units to support their business plans.”

Future traineesJL is also working on a revision of its trainee programme, driven at least in part by the recognition that the company needs to recruit a different type of candidate. “In the past, the typical candidate who applied for a traineeship had a business college certificate,” says Tove Elisabeth Nielsen, “but the complexity of our industry is increasing and JL is becoming more and more global, so we want candidates with a stronger theoretical base, who have a bachelor degree in business. We are

presently in the process of designing a graduate programme that will not only be offered to candidates who want a career within operations or chartering, but also to candidates within finance, business analysis, procurement and so on.”

The trainee programme in past years recruited candidates only from Denmark, but the plan now is to recruit candidates from overseas offices as well, particularly from Singapore, where JL has a growing presence. “We say we are an international company with global operations,” says Tove Elisabeth Nielsen, “and our recruit-ment policy should reflect that.” Changes in the programme will be implemented in 2012. The one thing that will not change, according to Tove Elisabeth Nielsen, is the programme’s importance to JL. “Our view is that trainee graduates become permanent employees,” she says. “We are selective and take a limited number of candidates who will continue a career with the company. We have always had a very high retention rate in the past and regard our trainee graduates as a valuable future resource.”

Despite the financial crisis, JL has continued to invest in employee education and career development. Two groups of middle managers have recently completed a year-long manage-ment and leadership programme, and JL introduces a graduate programme next year.

No end to education“The pace of change in our industry is increasing all the time . . . So continu-ous competency development is the key to keeping up – for JL as a com-pany and for all of us who work here.”

Tove Elisabeth NielsenSenior Vice President, Head of Corporate Human Resources

15

Delivery of two 3,300 cbm semi-refrigerated gas carriers on bareboat contract from Italian Gas and Heat changed the profile of LK’s small semi-refrigerated segment, and the first in a series of six 3,600 cbm pressurized gas carriers from the Yangzhou Kejin Shipyard in China points to the growing importance of Asian markets.

Lauritzen Kosan fleet renewal

According to Thomas Wøidemann, president of Lauritzen Kosan, there is a backstory to the arrangement with Gas and Heat, an Italian company that sup-plies cargo plants and cargo tanks for gas carriers. “Originally, Gas and Heat took on a contract with a Greek shipowner to build four 3,300 cbm semi-refrigerated LPG carriers at a yard in Ukraine,” he says. “The shipyard went bankrupt, and the project was shifted to a yard in Tur-key. The project was delayed beyond the contractual delivery date, and the original owner backed out of the contract. As Gas and Heat had already built the cargo plants and cargo tanks for the first two vessels they decided to claim ownership of the four gas carriers in order to avoid losing everything they had invested in the project. However, they had no experience or resources to actually operate the ves-sels, which explains how we came to step in and take the first two on a contract under which LK crews and operates the vessels and pays a bareboat fee to Gas and Heat. This isn’t such an unusual story in the context of the recent economic down-turn, but Gas and Heat came through

very well, and that is what counts. We are happy to have established a good relation-ship with Gas and Heat.”

New vessels from ChinaLK often chooses to work with smaller shipyards that offer the possibility of designing vessels in-house, which is what led LK to work with Yangzhou Kejin Shipyard in China on a series of six pres-surised carriers (see opposite page). “Many shipyards use off-the-shelf-design,” says Thomas Wøidemann. “We selected Yang-zhou Kejin Shipyard because they were willing to build to our design and work with us on development, which is impor-tant to us, particularly when it comes to environmental technology. These ships are arriving at the perfect time to fit into our existing contracts in Southeast Asia, which is an area of increasing interest to LK.” Delivery of the Helle Kosan was a bit delayed because of LK’s insistence on high standards. It is, however, not unu-sual to experience a longer learning curve on the first vessel in a series, and the remaining five vessels are still expected to be delivered on schedule within 2011.

Gas and Heat / G&H Shipping

Pisa, Italy-based Gas and Heat specialises in the design, procure-ment, fabrication, installation, commissioning and testing of cargo containment and handling systems for transportation of liquefied gasses at sea. Thanks to a partnership with MES (Marine Engineering Service), Gas and Heat can also offer its clients complete ship design, including supervision during construction.

In 2004, Gas and Heat established a new company, G&H Shipping, to build gas carriers – designed by MES, with cargo plants designed and manufactured by Gas and Heat – to be sold to owners or directly operated. The first two ships from four sister vessels finalised at Besiktas Shipyard in Turkey were delivered last year and chartered to Lauritzen Kosan. The second two will be delivered in the second quarter of 2011.

16

Henrik Thirup Daarbak, LK’s site manager at Yangzhou Kejin Shipyard, provides an overview of what is involved in working with a Chinese shipyard to produce a series of six new gas carriers.

Lauritzen Kosan fleet renewal

Working with a Chinese shipyard

A win-win relationship“When we chose Yangzhou Kejin Shipyard to build our vessels, we knew it was a relatively young yard without any previous experience in building gas carri-ers, but we evaluated the yard as offering an excellent platform to build on. It was clear that this yard was in the progress of expanding, and all the facilities we would like to have would be present here within a relatively short time. The yard’s limited experience made it difficult at first, but they repaid our confidence with fantastic cooperation and willingness to fulfil our requests to perfection. Kejin’s philosophy is that if they can meet our standards, they will be able to meet the standards of any other international shipowner. So this

project gave us the opportunity to build our idea of the ideal small gas carrier, and it gave the shipyard the opportunity to sharpen their skills for future business.

“We tried to implement as many of our ideas gathered over the years as possible into these relatively small vessels. In addition to the primary requirements of safe cargo handling and operation and environmental responsibility – these ves-sels are built to Green Passport require-ments and we expect them to get Class NK Environment Awareness Certificates – the key words for the design have been: operating efficiency, accessibility, durabil-ity, maintenance friendly – and, very important, crew comfort.

Pinpointing specifications “The biggest challenge for anyone begin-ning a project like this is learning to understand working in China. On the engineering side, their theoretical knowl-edge appears to be fully up to our stand-ard, but many of the engineers are young and don’t have a lot of experience. So we assisted with creating quality standards. We found the shipyard workers in general to be very interested in learning, and as time passed by the way to success became clearer and clearer. We learned that we could all benefit from each other.

“Needle-sharp specification turned out to be the key to achieving results. Realizing this led us to start presenting as much as possible of our own design in 3D draft, after which it was refined in cooperation with the yard engineers. This was a very successful method, which we in the end used throughout the vessel to pinpoint our wishes for design and details. The job became more and more comprehen-sive, and in the end we had produced an almost complete 3D vessel, including wheelhouse cabins and mess room ar-rangements and installations. These 3D drawings were used to train the work-ers in understanding our standards and requests for end results, after which they were copied into normal 2D production drawings.

“Despite the challenges involved, we are on schedule to complete our series of vessels this year. Which I believe proves that we can build excellent ships in China – ships that will completely meet the high standards we set for them and that the oil majors demand. It just takes a little extra effort.”

Yangzhou Kejin Shipyard

17

The receptionOn the surface, the Japanese-style recep-tion hosted by JL in the unique Tokyo Kaikan – close to the Imperial Palace, in the very centre of Tokyo – is just another “ordinary” reception, like thousands held every evening in cities all around the world. But right from the beginning it’s evident that the word “ordinary” doesn’t really apply here. For one thing, guests begin arriving a good half hour before the reception starts: when a Japanese recep-tion guest is invited to arrive at 18:30, he is there at 18:30 sharp – to come later would be an insult to the hosts.

A well-rehearsed formulaThere is even a special pre-reception room where the Japanese shipping, business,

and banking guests gather for pre-drinks and snacks before the “real” reception be-gins. Then at 18:30 there are 300 guests lined up in straight rows outside the large reception room, ready to file in and shake hands with the JL representatives from management and the board of directors, also lined up and waiting.

Inside, there is obviously a well-rehearsed formula for a successful reception being practiced by the guests. First a trip to the bar as guests begin to mingle. Some know each other beforehand, others start cautious conversations after exchanging business cards in the formal Japanese way: cards are presented with both hands, exchanged, and then followed with a bow And so the conversation can begin.

Initial steps to business talkDuring the reception, a Japanese shipping representative explains some of the basics of business contact, starting with the fact that a first meeting is strictly that – there is no possibility that concrete business will be discussed. A second meeting often takes place on neutral ground, such as at a restaurant after office hours. Here there’s drinking and conversation, but rarely anything directly touching on business – even though both parties know exactly what’s going on.

When you reach the third meeting there’s something approaching a genuine negotiation, but still in the Japanese way, in which easily two-thirds of the meeting is taken up with an exchange of platitudes and friendly conversation about the weather. Only shortly before the meeting ends might the real subject be broached, often phrased as a question to which the answer may only be a proposal for a later meeting. Actual negotiations are approached step by step, but by the fourth meeting it is in fact allowed to be more direct, asking questions, expecting answers - but still in a friendly and very cautious manner, with no expectation that a final contract will be in place when the meeting ends.

A great success Despite widely differing sets of social ex-pectations, it is possible to conclude after only about an hour that this reception is shaping up to be a great success. The Japanese guests are experienced veterans of many receptions. Once they have greet-ed the host, exchanged business cards, and possibly had a bite to eat, it is

JL’s board of directors and members of senior management visited Japan and China last autumn. In addition to attending meetings and making contacts, they also experienced an evening reception in Japan and a ship’s namegiving ceremony in China that opened windows on different cultures and different habits.

East meets westby Peter Suppli Benson*

J. Lauritzen visiting executives, from left: Torben Janholt, President and CEO; Birgit Aagaard-Svendsen, Executive Vice President & CFO; Jan Kastrup-Nielsen, COO; Anders Mortensen, Executive Advisor. J. Lauritzen; Ejner Bonderup, President, Lauritzen Bulkers; Jørgen Kragh, President, Far East Region.

18

customary to slip out, possibly to another reception somewhere in the city. So it is not unusual for a party of 300 guests to be reduced to a handful after just an hour or so. But not this time as the great hall is filled with lively conversation and the final guests almost have to be nudged out the doors after a couple of hours – a tribute, perhaps, to the Danish hosts and their more relaxed style.

The namegiving The place is Guangzhou Shipyard Inter-national (GSI) in the southern Chinese city Guangzhou. A long way from home, and surely a place that few Danes have heard of, but close your eyes for a moment and you could almost be back home as Denmark’s national anthem, “There is a lovely land,” is played nearly to perfec-tion by the shipyard orchestra. Only the heat and the dust that swirls around and crunches between our teeth, reminds us that we are at a wharf on the Pearl River in southern China.

Red-carpet treatmentIts ten million inhabitants make Guang-zhou one of the largest cities in the world and its position as a key transportation hub and trading port make it a kind of South-Chinese centre for the new world order of a globalised economy. Today, GSI has rolled out the red carpet as directors and executives of JL arrive for the namegiv-ing ceremony of a new 55,000-tonne product tanker built at the yard. Leading the way is the guest of honour, Elisabeth Vad Sørensen, who is “godmother” of the new vessel. She and her husband arrive in a black limousine, while the rest of the guests are transported by bus.

Nevertheless, everyone enjoys the same experience – one that is carried off with the same assembly-line precision as the construction of ships. The godmother cuts the ribbon and the champagne bottle is smashed with a bang against the red side of the ship. Simultaneously, a major fireworks display explodes overhead, confetti swirls through the air, and a sym-phony orchestra and a Chinese drum en-semble sets off on a galloping symphony. Then a few quick speeches, an exchange of gifts, and all go aboard the tanker, now named Freja Pegasus.

Signs of a new world orderOn board the Freja Pegasus, a trip into the galley provides a good indicator of new times for Danish shipping compa-nies. Here the steward is Indian, cooking for an all-Indian crew. Danish meatballs have been removed from the menu, and instead there’s the smell of curry and spicy rice. The JL directors inspect the ship’s construction and declare themselves satisfied with the vessel and its quality, a conclusion which is roundly supported by members of the Lauritzen site team

who have followed the ship during its construction.

Just 30 minutes after the champagne bottle was smashed, and the Freja Pegasus received her name, the well-choreographed naming celebration is over. The guests from JL are then given a sailing tour down the Pearl River – a tour that again reveals China’s place in the new global order. At first they pass older ships and worn, smaller shipyards on the river banks, but closer to the city centre, an all-new convention centre commands the scene. A convention centre that at 1.2 million square meters is the world’s largest – for comparison, Bella Centre in Copenhagen is only 122,000 square meters. From here it seems a long way to little Denmark, whether or not the shipyard’s orchestra was able to play the national anthem almost to perfection.

*Peter Suppli Benson is a journalist at the

Danish daily newspaper Berlingske who

participated in the visit to Asia. This article

is adapted from an article originally published

in Berlingske, 21 November 2010.

Elisabeth Vad Sørensen cuts the ribbon at the namegiving ceremony for Freja Pegasus.

Photo by Peter Suppli Benson

19

Jens Ditlev Lauritzen, Chairman of the Lauritzen Foundation (Lauritzen Fonden), received the International Bulk Journal (IBJ) 2010 Lifetime Achievement Award last November at the Savoy Hotel in London. The IBJ – the leading maga-zine for the maritime dry bulk industry – recognised his many years of contribution to the bulk shipping industry. With Jens Ditlev Lauritzen at the helm from 1998 to 2009, Lauritzen Bulkers developed into a leading owner and operator of bulk carriers. “It is a great honour for me to receive this award, which I would like to share with the many professional employees at Lauritzen Bulkers, who are the prerequisite for the great progress of the company in recent years,” says Jens Ditlev Lauritzen.

“Awards are more important than ever as a way of reinforcing company brands,” says Ejner Bonderup, president of Lauritzen Bulkers, “so the Lifetime Achievement Award was a great honor to Jens – it was the most prestigious award given at the ceremony – and also good recognition for Lauritzen Bulkers. The company was given a further boost by being shortlisted for the Bulk Ship Operator of the Year Award. Even though we didn’t win, nomination for a major industry award is a strong confirmation of our standing in the dry bulk community.”

On 12 March, Anders Kartik Jensen who is part of the global chartering team in Lauritzen Bulkers was crowned champion of the Atacama Crossing 2011, after finishing the gruelling 250-km self-supported footrace in a time of 30:49:05. Thirty-six nationali-ties were represented in the race, which took place over seven days in Chile’s brutal Atacama Desert, the largest cold coastal

desert and the driest place on earth. The six-stage course moved from sand dunes, up hills and down through winding gullies and canyons, and into the difficult terrain of endless, coral-like salt flats.

It is the second win for the Singapore-based, 29-year old, following his strong performance in the Sahara Race 2010, in which led the field from the start last October to win the 250-kilometre run through the Egyptian desert. “I feel awe-some,” said Jensen as he crossed the finish line in the ancient town of San Pedro de Atacama, Chile. “I’m feeling much better than after winning the Sahara Race 2010. The competition was much tighter and I found this race harder.” Maybe it’s a question of practice makes perfect, as

Anders Kartik Jensen has also participated in the Sahara Race 2008 (see Lauritzen News #10, April 2009) as well as in two other events in the Racing the Planet Series, the Namibia Race 2009 and the Gobi March (China) 2010, in which he finished fourth.

Lifetime achievement award to Jens Ditlev Lauritzen

Anders Kartik Jensen won’t stop running

Copyrights RacingThePlanet Ltd, and credited to Zandy Mangold.

Copyrights RacingThePlanet Ltd, and credited to Zandy Mangold.

20

Lifetime achievement award to Jens Ditlev Lauritzen

On 8 February 2011, J. Lauritzen Singa-pore marked the “Year of the Rabbit” at a well-attended reception at the Sentosa Pa-villion situated in the scenic surroundings of Serapong Golf course in Singapore. Chinese New Year in Singapore is all about celebrating and renewing old ties. On that note J. Lauritzen Singapore had invited partners, customers, and friends to the festive event, which also included a spectacular performance by the National Danish Performance Team. Being one of the most outstanding display gymnastics teams in the world, the team builds its performances on Danish gymnastics tradition and culture.

A growing presenceJ. Lauritzen has been represented in Singapore since 2005, and over the years the company has built a strong base and enjoyed excellent cooperation with au-thorities, customers, and partners. During 2010 the company doubled its number of employees, and at the end of the year 20 employees were working out of the Singa-pore office. 2010 was also the year when Lauritzen Kosan, the gas carrier division of J. Lauritzen, established its presence in

Singapore to spearhead its growing Asian activities. “Singapore is an internation-ally attractive and competitive business environment, especially within shipping, and the intention is definitely to increase our business focus here even further” says Jesper Kragh Andresen, managing director of J. Lauritzen Offshore Singa-pore Pte. Ltd.

J. Lauritzen Singapore celebrates Chinese New Year

Jesper Kragh Andresen, managing director of Lauritzen Offshore Singapore Pte. Ltd.

The National Danish Performance team performing at the Sentosa Pavillion.

Partners, customers, and friends at the Sentosa Pavillion.

21

Dan Swift back in BrazilIn late April 2011 Lauritzen Off-shore’s Dan Swift was contracted by Brazilian Petrobras for maintenance and safety purposes. Dan Swift will be deployed to accommodate close to 300 people for Petrobras in Campos Basin offshore Brazil. The contract duration is five years, commencing July 2011.

Latest news:

A reorganisation of Lauritzen Offshore was kicked off at the end of last October and is now fully implemented. “In order to succeed in the offshore segments in which we operate we must be both global and local,” says Jesper Kragh Andresen, recently appointed CEO of Lauritzen Offshore and managing director of JL’s Singapore office. “Our new set-up helps us serve customers efficiently in diverse markets. It helps us combine global reach with strong local presence and close cus-tomer contact.” Under the new arrange-ment the closely linked operating units: Lauritzen Offshore, in Singapore and Rio de Janeiro, and Lauritzen Offshore Services A/S, in Copenhagen. Michael Kristensen has been appointed COO of Lauritzen Offshore. Ole Svendsen has been appointed general manager of Lauritzen Offshore Services A/S (please see Staff News, opposite page).

Working togetherAll shipowning responsibilities for offshore vessels (i.e. shuttle tankers and the accommodation and support ves-sel, Dan Swift), including commercial control and new business development is handled from Singapore by Lauritzen Offshore. Responsibility for the technical operation and development – technical management, Health, Safety, Security, Environment, and Quality (HSSEQ) and technical projects remain in Copenhagen under Lauritzen Offshore Services A/S. The different parts of the overall organi-sation work together across time-zones with regards to new business development and tendering for new charter contracts. While these are managed and coordinated from Singapore, many vital inputs are needed from the technical organisation.

“Singapore offers a supportive busi-ness environment and a well-developed offshore business community,” says Jesper Kragh Andersen, “while we in Copen-hagen have a deep pool of technical and operational knowledge. This accounts for the difference in responsibilities. Until now, the key focus for business has been dedicated to Brazil, where we have secured three contracts on shuttle tankers with Petrobras and Transpetro and where the Dan Swift also operated for 13 months servicing Statoil. We have established a strong presence in Rio with Portuguese-speaking staff to help deal efficiently with local customers and support operations. The offshore industry requires close cus-tomer care and efficient handling of local logistics related to importation of goods and services, which can be complex and costly. Our Rio office is well situated and staffed to deal with such challenges and seize opportunities. Naturally, all our of-fices – Copenhagen, Singapore, and Rio de Janeiro – work together on a daily basis.”

Dan Swift to NigeriaAs the Dan Swift’s contract with Statoil recently came to an end, Lauritzen Offshore secured an interim contract for the vessel working for Shell in Nigeria. In keeping with the philosophy of maintain-ing a local presence as a key to success, a local shore-base was established in Lagos to assist with the contract. “Work processes in Nigeria – and West Africa in general – are often challenging, so it was especially important to have our own hands and eyes at the scene to make things happen. We couldn’t commit a highly valuable asset like the Dan Swift – let alone the people on board the vessel – in uncertain conditions without strong local representation. Our local base acted as a “command centre” in the early phases of the contract and enabled high-speed execution of a complex project and rapid response to needs on the ground – an ap-proach that has been instrumental to the project’s success.”

Reorganisation for Lauritzen OffshoreOffices in Singapore, Copenhagen, and Rio de Janeiro work across time zones to share project re-sponsibilities and maintain close customer contact.

22

Reorganisation for Lauritzen Offshore

Anders Mortensen has taken the position of executive advisor to JL’s Executive Management in order to ensure a posi-tive outcome of the dialogues that JL is conducting with potential partners in the offshore industry. Due to the importance of this matter, Anders Mortensen is now engaged 100% in these activities and has been released from his operational duties and responsibilities.

Consequently, Jesper Kragh Andresen, managing director of J. Lauritzen

Singapore has been appointed managing director of Lauritzen Offshore Singapore Pte., to which company the legal as well as commercial activities of Lauritzen Off-shore Services A/S have been transferred.

Michael Kristensen has been appointed Chief Operating Officer (COO) of Lauritzen Offshore Singapore Pte.

Ole Svendsen now heads Lauritzen Offshore Services A/S in the position of general manager.

In addition, Jan Kastrup-Nielsen, former head of Lauritzen Kosan and Lauritzen Tankers, was appointed Chief Operating Officer (COO) of J. Lauritzen during the Company’s general assembly in April 2011.

Consequently, as of 1 March 2011, Thomas Wøidemann, former Senior Vice President, was promoted to President of Lauritzen Kosan; and Erik Donner, for-mer Senior Vice President, was promoted to President of Lauritzen Tankers.

JL has made several significant promotions in top management as well as a number of organisational changes to support the growth strategy of offshore activities.

Staff News

Jesper Kragh Andresen

Michael Kristensen

Ole Svendsen

Jan Kastrup-Nielsen

Thomas Wøidemann

Erik Donner

Anders Mortensen

JL’s Executive Committee extended

As of 1 January 2011, JL’s Executive Committee has been extended. New members’ names are marked with an asterisk:

(from left) Erik Donner*, President, Lauritzen Tankers, Tove Elisabeth Nielsen *, Senior Vice President, Corpo-rate Human Resources, John M. Jørgensen*, Senior Vice President, Treasury, Ejner Bonderup, President, Lauritzen Bulkers, Torben Janholt, President & CEO, J. Lauritzen, Jan Kastrup-Nielsen, Executive Vice President & COO, Birgit Aagaard-Svendsen, Executive Vice President & CFO, Thomas Wøidemann*, President, Lauritzen Kosan, Erik Bierre*, Senior Vice President, Business Control.

23

EditorsTorben JanholtTove Elisabeth NielsenJens SøndergaardMaj Faurholm

J. Lauritzen A/SSankt Annæ Plads 281250 Copenhagen KDenmarkTel: +45 3396 8000

Editorial support and designCross-Border CommunicationsCopenhagen

Lauritzen News is a semiannual publication. Reproduction permitted only after agreement with the editors.

In his capacity as president of the World Wildlife Fund (WWF) in Denmark, HRH Prince Henrik organised a charity dinner in the Orangery at Fredensborg Castle in September 2010. JL was among

the 260 guests who attended the charity event to support the WWF, which works to protect endangered wildlife and envi-ronments, tackle climate change, and promote sustainable use of resources.

Other guests included members of the royal family as well as prominent representatives of Denmark’s business community.

J. Lauritzen A/S operates globally and is engaged in diversified ocean transport through Lauritzen Bulkers (dry bulk cargoes), Lauritzen Kosan (petrochemical and liquefied petroleum gases) and Lauritzen Tankers (refined oil products). J. Lauritzen also serves the offshore oil exploration and production industry with specialised tonnage through Lauritzen Offshore.

JL employs a staff of approximately 1,200 persons and together with partners/associates controls a combined fleet of about 200 vessels including vessels on order consisting of bulk carriers, gas carriers, product tankers and dynamically positioned offshore support vessels.

For more details on JL’s business activities and fleets, see www.j-l.com

JL attends royal WWF charity dinner at Fredensborg Castle

From left: Jan Kastrup-Nielsen (J. Lauritzen), Takashi Nishino (Mitsui & Co), Torben Janholt (J. Lauritzen), Carsten Wiebers (KfW banking group), Stein H. Arnesen (Tailwind A/S), Carlo Pontecorvo (L.G.R. di Navigazione), Birgit Aagaard-Svendsen (J. Lauritzen), Angus Paul (Glencore International AG), Matthew Delucca (Mid-ship Group LLC).