The I.M. Skaugen Group (IMSK) yesterday announced satisfactory first quarter results. sThe pre-tax profit was USD8.2 million for the 1Q08 compared to USD6.6 million for the 1Q07. The result of the 1Q08 on an EBITDA basis was USD15.1 million compared to USD7.9 million for the 1Q07 and USD5.3 million in 4Q07. I.M. Skaugen ( IMS) is engaged in 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.
Norgas, our petrochemical gas carrier business continued its acceptable performance driven by strong exports out of the Middle East. Favorable feedstock prices and strong demand out of South East Asia and Europe continue to be the main drivers. The utilization level remains high and contributes to accelerate earnings.
Skaugen Marine Construction (SMC), our Chinese-based shipbuilding activity responsible for all aspects of the company's new ship construction program. The second vessel in the Summergas series "Qin Shi Huang" was delivered to its new owners during the first quarter of the year generating a USD4.4 million profit. In 2Q08 the third ship shall be delivered to its new owners.
A continued rise in cost for raw materials and specialized components pressure construction cost upwards. However, the unique SMC concept continues to deliver special capabilities and added flexibility, at attractive price levels and below our competition.
SPT, our Marine Transfer Operation continues to face challenging trading conditions. Disruptions in scheduled transfer services mostly due to adverse weather and port/terminal delays forced SPT to charter in additional tanker capacity at very high charter rates. Presently four out of six purpose built Aframax tankers operate in the US Gulf with the remaining two en route and expected to come into operation in 2Q08. The coming into operation of all six new vessels is expected to contribute to a reduction in the average vessel cost.
New initiatives this quarter During the quarter IM Skaugen announced its participation in the bid for a Carbon Capture and Storage (CCS) project in the UK. IMS is part of a consortia led by RWE npower and is working together with Teekay to develop the complete logistics solution for the project. The project is the first of its kind and also the first step to the exiting field of large-scale shipping of CO2.
Norgas, our petrochemical gas carrier business continued its acceptable performance driven by strong exports out of the Middle East. Favorable feedstock prices and strong demand out of South East Asia and Europe continue to be the main drivers. The utilization level remains high and contributes to accelerate earnings.
Skaugen Marine Construction (SMC), our Chinese-based shipbuilding activity responsible for all aspects of the company's new ship construction program. The second vessel in the Summergas series "Qin Shi Huang" was delivered to its new owners during the first quarter of the year generating a USD4.4 million profit. In 2Q08 the third ship shall be delivered to its new owners.
A continued rise in cost for raw materials and specialized components pressure construction cost upwards. However, the unique SMC concept continues to deliver special capabilities and added flexibility, at attractive price levels and below our competition.
SPT, our Marine Transfer Operation continues to face challenging trading conditions. Disruptions in scheduled transfer services mostly due to adverse weather and port/terminal delays forced SPT to charter in additional tanker capacity at very high charter rates. Presently four out of six purpose built Aframax tankers operate in the US Gulf with the remaining two en route and expected to come into operation in 2Q08. The coming into operation of all six new vessels is expected to contribute to a reduction in the average vessel cost.
New initiatives this quarter During the quarter IM Skaugen announced its participation in the bid for a Carbon Capture and Storage (CCS) project in the UK. IMS is part of a consortia led by RWE npower and is working together with Teekay to develop the complete logistics solution for the project. The project is the first of its kind and also the first step to the exiting field of large-scale shipping of CO2.