I. M. Skaugen SE :1Q Result 2013
(Thomson Reuters ONE) -
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.
PERFORMANCE 1Q-2013
The performance of our gas transportation activity was disappointing in the
first quarter of 2013. A number of unplanned shut-downs of petrochemical plants
in the Middle East replaced long haul trades with short haul trades for the
commodities that we carry and with loss of ton miles as a result. 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 slower than anticipated growth in demand especially in Europe and China also
had an impact on our core business.
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 our strategy for visualising values and focus on our core business
Gas Transportation, we have re-structured our joint venture companies with GATX.
We 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 we have
acquired control of our 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 our 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 we 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. We 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 our five
year average and the weakness through the quarter is a reflection of more idle
time for our ships.
In January we did our 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.
NORGAS CATHINKA
On April 8th 2013 in the late evening our vessel "Norgas Cathinka" and its crew
and cargo arrived safely at the entrance of Singapore port; having been released
from its more than 6 months detention in Indonesia. All our crews, save for
two, were released and allowed to leave the country. Two of our colleagues
remain in custody in Indonesia awaiting completion of a court trial with regards
to their role in the events leading to the collision and the loss of lives. The
"Norgas Cathinka" was on departure escorted to an agreed point by police launch
to ensure she was safe for a simultaneous release of an "out of court
settlement" payment that we and our insurance providers have made to the owners
of the ferry "Bahuga Jaya".
This situation came from an unfortunate accident in the Sunda Strait in
Indonesian waters on September 26th 2012 involving our ship "Norgas Cathinka" in
a collision. The incident leading to the tragic loss of life for 6 passengers
and 1 crew member and reportedly the missing of 2 passengers, on the Indonesian
flag ferry called "Bahuga Jaya", which according to experts probably lost its
stability due to the impact. We have been advised that the stability was
probably lost due to the shifting of the cargo (trucks) on board.
This accident was the worst accident, involving loss of lives, for our
Company since a tragic sinking by a ship and by enemy torpedoes during Second
World War and thus a low in our history - and we all need to make sure it will
never happen again. We do sincerely regret the loss of lives and we do consider
it an avoidable accident that should not have happened, and we do much regret
the part we were involved in it.
We are working hard with all relevant entities to secure the earliest possible
release of our two crew members still in Indonesia.
We understand that the National Safety Transportation Committee of Indonesia
(NTSC) will publish its report on its findings with regards to the accident
soon. We have been cooperating with all Indonesian authorities to ensure
continue to there is an open and transparent process with fair and impartial
investigations and we do hope the NTSC will provide assurances of the same when
their final report is published. The NTSC has relied on the VDR from our ship to
develop a factual analysis of the events leading to the collision. The NTSC
report will be produced by a cooperation between flag state (Singapore MPA) and
port state; and as per the IMO guidelines. The Governments of Philippines, China
and the two shipping companies involved have been encouraged to comment on its
findings. In our view the NTSC report has, in its draft form that we made
comments upon, the appearance of being balanced and factual and give clear
recommendations on the core issue resulting in the collision. The report does
not, as of yet and in our view, cover sufficiently the reasons leading to the
sinking of the ferry and the loss of lives - and this is in our view necessary
in order to learn from the accident and take the corrective action to make the
ferry operation safer. The recommendations given to our company by NTSC re
navigational issues on our ship are clear and we have already taken substantive
measures to implement and improve and change! - and will enforce this as we
proceed.
The ferry "Bahuga Jaya" was 40 years old, and experts are of the view that it
was evidently not maintained for its trade. It was probably unseaworthy and did
most probably sink for reasons of fatigue and/or construction modification
leading to the loss of stability and its failure. The sinking caused, in
experts' views, the loss of lives and not the collision itself. We have been
told that the loss of lives was also caused by the lack of proper procedures on
the ferry to evacuate passengers in an emergency and with inadequate lifesaving
procedures and equipment. The available data from the VDR data (Black Box) on
our ship makes it possible to reconstruct the events leading to the collision.
From this, it is evident that our vessel is not the vessel that caused the
collision.
NON-STRATEGIC JOINT VENTURES AND ASSOCIATES
Our non-strategic investments, including SPT, delivered an EBIT of USD0.2 mill
which was a significant improvement compared to a negative EBIT of USD2.1 mill
in 1Q 2012 .
We are in the process of monetizing the investment in the manufacturing company
Shenghui Gas and Chemical Systems. We are reasonably confident that these shares
will be sold in 2013 at a gain compared to book value of the investment.
COMPANY OUTLOOK
We remain cautiously optimistic about the outlook for the remainder of the year
and that the growth in world economy will pick up again. We foresee that the
export of petrochemicals from the Middle East will come back to more normal
levels and thus we expect an improvement from the 1Q for our gas transportation
business.
I.M. Skaugen SE
Board of Directors
I.M. Skaugen SE
If you have any questions, please contact:
Bente Flø, Chief Financial Officer, on telephone +47 23 12 03 00 or by e-mail:
bente.flo(at)skaugen.com. This press release is also available on the Internet at
our website: http://www.skaugen.com.
I.M. Skaugen SE is a Marine Transportation Service Company, with a focus on
Innovative Maritime Solutions. Our core activity is the seaborne transport and
logistics of liquefied gases, such as petrochemical gases, LPG and now also LNG.
The I.M. Skaugen Group of companies (IMS) currently operates a fleet of 39
vessels worldwide of which 19 are gas carriers within the core business area. We
are also capable to provide on- and off-shore LNG terminal management as well as
ship to ship transfer services of LNG/LPG and on a global basis. We have in-
house capabilities for the development and design of specialized high quality
gas carriers for our niche markets and we recruit, train and employ our own team
of seafarers.
IMS employs approximately 2,000 people globally out of which 700 are within our
core gas activity, and with 23 nationalities represented. We manage and operate
our activities and service our clients from our offices in Singapore, Oslo,
Shanghai, St. Petersburg, Houston, Sunderland and Bahrain.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
IMSK 1Q Report 2013:
http://hugin.info/179/R/1696164/558519.pdf
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: I. M. Skaugen SE via Thomson Reuters ONE
[HUG#1696164]
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Datum: 25.04.2013 - 07:53 Uhr
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News-ID 252761
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