Norwegian Skaugen Group posts half year pre-tax profit of US$17m
Norwegian-based IM Skaugen Group (IMSK) made a half year pre-tax profit was US$17m, compared to US$8.2 million for the first half of last year. On an EBITDA basis the result was US$32.2m compared to US$16.1m.
Skaugen has three business units; Norgas comprises the group's gas transportation activities, SMC is responsible for the new ship building activities in China. SPT is involved in marine transfer of crude oil and LNG. The company notes: “Norgas, our petrochemical gas carrier business showed an acceptable performance driven by strong exports out of the Middle East with high fleet utilization levels as a result. The relative advantage of ME petchem producers increases as global feedstock prices continues to climb on the back of rising oil prices.” It adds: “Skaugen Marine Construction (SMC), our China-based shipbuilding organisation. The second vessel in the Summergas, series Qin Shi Huang, was delivered to its new owners during the first quarter for the year generating a USD4.4 million profit. In the third quarter such ship shall be delivered to its new owners. Skaugen's marine transfer business SPT had a “challenging” Q1 with difficult trading conditions but, the company says, has “continued into a steady path to improved profitability in the second quarter”. It adds: “All six new built ships have now been delivered to SPT, but only four have reached the USG as of yet. The new fleet reduces the cost base and provides the company with a modern state of the art core fleet.” However Skaugen adds: “Market conditions remain challenging as a general competition for market share is strong. In addition, high pressure on operating costs including bunkers adds further pressure on margins going forward.”
Skaugen has three business units; Norgas comprises the group's gas transportation activities, SMC is responsible for the new ship building activities in China. SPT is involved in marine transfer of crude oil and LNG. The company notes: “Norgas, our petrochemical gas carrier business showed an acceptable performance driven by strong exports out of the Middle East with high fleet utilization levels as a result. The relative advantage of ME petchem producers increases as global feedstock prices continues to climb on the back of rising oil prices.” It adds: “Skaugen Marine Construction (SMC), our China-based shipbuilding organisation. The second vessel in the Summergas, series Qin Shi Huang, was delivered to its new owners during the first quarter for the year generating a USD4.4 million profit. In the third quarter such ship shall be delivered to its new owners. Skaugen's marine transfer business SPT had a “challenging” Q1 with difficult trading conditions but, the company says, has “continued into a steady path to improved profitability in the second quarter”. It adds: “All six new built ships have now been delivered to SPT, but only four have reached the USG as of yet. The new fleet reduces the cost base and provides the company with a modern state of the art core fleet.” However Skaugen adds: “Market conditions remain challenging as a general competition for market share is strong. In addition, high pressure on operating costs including bunkers adds further pressure on margins going forward.”