I.M. Skaugen Group posts 1Q results
The I.M. Skaugen Group (IMSK) achieved a pre-tax result for 1Q13 of USD25.1 mill, compared to USD0.1 mill in 1Q12. EBITDA was USD3.6 mill for 1Q13 compared to USD5.5 mill in 1Q12, said in the company's press release.
The performance of gas transportation activity was disappointing in the first quarter of 2013. The total export volumes of petrochemicals out of the Middle East in 1Q were down; about 40 per cent compared with 4Q 2012 and about 55 per cent compared with 1Q 2012.
A highlight and a great relief was the long awaited release of Norgas Cathinka from its 194 days detention in Indonesia and with a total loss of EBITDA (revenues and cost) of about USD5mill.
In line with company strategy for visualising values and focus on company core business Gas Transportation, company have re-structured company joint venture companies with GATX. company now have direct ownership of five of these vessels. The five vessels owned by GATX will continue to trade in the Norgas pool. From an operational point of view this will have no real change for the business of Norgas. As company have acquired control of company part of the joint ventures, the previously held interests are re-measured to fair value and a gain of USD 28.3 mill is recognized in the income statement. With these assets and debt consolidated, the impact on the equity ratio will be immaterial.
Our strive for reduction of headcount of shore based staff and focusing our resources around company core business 'Gas transportation' is paying-off and we will reach the target set in 2010 of a 50% reduction in head-count during the course of this year.
All the projects initiated by the board to address the improvement of the equity ratio remain in full force and company will continue to see the effect of these going forward in 2013.
The remaining IMSK10 bond was settled as planned and lowered the overall debt position and thus had a positive impact on the equity ratio. Company have no refinancing needs until 2015, no material capital commitments and remain fully financed.
The result on EBITDA basis in Norgas Carriers segment for 1Q13 was USD4.2 mill compared with USD6.1 mill for the same period in 2012 (based on IMS's ownership).
Norgas' total volumes transported were up 8% compared with 4Q 2012 but down 17% compared with 1Q 2012.
The average time charter equivalent rate for the first quarter is above company five year average and the weakness through the quarter is a reflection of more idle time for our ships.
In January company did second LNG cargo on one of the Multigas ships, proving not only the technology itself but also our small scale LNG concept. Our LNG segment at SPT delivered in 1Q13 a complete solution, equipment and services, for ship to ship transfers of LNG to a global customer.