Gearbulk Integrated Report 2023 - Report - Page 75
INTEGRATED REPORT 2023
Balancing our allocation of capital with sustainable costs
Balancing the adverse environmental impact of our busi-
practise
ness with the race to reduce emission in our sector
Navigating the competitive landscape of providing Fleet
Strategically aligning with the objectives outlined in the
Management Services for our vessels has compelled us to
Paris Agreement to curtail emissions from our manufac-
undertake diverse initiatives aimed at cost reduction in vessel
tured capital, Gearbulk acknowledges the signi昀椀cance of this
operations. However, in the pursuit of minimising costs, there
goal while grappling with the imperative to strike a balance
exists a potential trade-o昀昀, as certain crucial cost elements
among customer relationships, joint venture commitments,
necessary for the proper maintenance of our vessels may
and substantial investment requirements. In navigating this
be overlooked. Failing to incur these essential costs, despite
complex terrain and in the absence of a de昀椀nitive best prac-
concerted cost-cutting e昀昀orts, could have lasting implications
tice, Gearbulk has opted for alternative solutions, one of which
on the overall condition and performance of our vessels in
involves reducing the speed of our vessels.
the long run. This underscores the delicate balance required
when making strategic decisions, where considerations of
It is essential to underscore that this decision to curtail vessel
昀椀nancial performance must be weighed against the impera-
speed comes with inherent trade-o昀昀s, particularly in the form
tive of sustaining and enhancing the operational integrity of
of a reduction in operating days for our 昀氀eet. This reduction
our 昀氀eet. Although we acknowledge the trade-o昀昀, Gearbulk
directly in昀氀uences the potential earnings that could have
ensures the highest standards of safety, and that a sustain-
been realised had we not pursued this initiative.
able cost basis are not to compromise our operational safety.
Capitals Impacted
Financial
Capital
Human
Capital
Capitals Impacted
Manufactured
Capital
Financial
Capital
Manufactured
Capital
Natural
Capital
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