Half-yearly report 2012
31.08.2012Shipping activities yielded NOK 7.8 mill in Q2 2012 compared to NOK 11 mill during the same period in 2011. First half of 2012 yielded NOK 18.9 mill, which is in line with same period in 2011. The result from the ship-owning companies (equity method) for first half of 2012 was NOK 17.7 mill compared to NOK 12.8 mill in same period 2011. The result before tax for first half of 2012 was NOK 16.1 mill compared to NOK 10 mill for same period in 2011. The securities portfolio had a loss of NOK -2.8 mill, compared to a loss of NOK -7.7 mill for same period in 2011.
The first half of 2012 finished on a positive note, where the outlook for fully-refrigerated LPG ships remain positive, and third quarter continued the upward trend started in second quarter.
On time charter basis Solvang's share of freight earnings for second quarter 2012 were NOK 43.8 mill compared to NOK 39.2 mill for same period in 2011, an increase of 11,7%. For the first half of 2012 freight earnings were NOK 90 mill, compared to NOK 82.9 mill same period in 2011. The Baltic Index, which climbed considerably during the second quarter, has increased from an average of around USD 46.5/ton in second quarter 2011 to an average of around USD 63/ton in second quarter 2012. The average rate / ton for the first half of 2012 was USD 56.3/ton, compared to USD 45.1/ton for same period in 2011.
A continued low USD/NOK exchange rate together with high bunker prices had negative impact on the results.
VLGC 82k-84k cbm
The LPG export volume out of the Arabian Gulf is a central driver for this market, and export volumes remained low in the first quarter until the end of April 2012. Main reasons are production delays and maintenance shutdown at some of the larger export facilities. Towards the end of April most of this is resolved and freight rates strengthens considerably on increased export volumes out of the Arabian Gulf, predominantly from Saudi Arabia, but with the addition of strong export growth from Qatar, UAE, Kuwait and Bahrain.
Panamax VLGC 75k cbm
LGC 60k cbm
Ethylene 12-17k cbm
The Solvang group's security portfolio has a book value of NOK 71.8 mill as per 30.06.2012. Solvang is responsible for the management of the portfolio, with a conservative investment strategy. The stock market dropped considerably towards the end of second quarter, and led to a negative value adjustment for the first half of 2012.
Transactions with related parties are as per the guidelines set within the code. The Group's principal broker for sale & purchase is Inge Steensland AS. There are also parallel investments done with other companies within Steensland group. All transactions are done at market terms.
The Solvang Group will have three scheduled classification dockings in 2012.
Stavanger, 31st August 2012
Making Heavy Fuel Oil Clean
Exhaust gas recirculation (EGR) combined with previous measures reduces NOx emissions from heavy fuel oil by up to 80 % in a typical LPG tanker. The concept is a potential game changer for Norwegian domestic shipping.
The greenest and most fuel efficient VLGC ever
Solvang’s new-builds (84k cbm) at Hyundai Heavy Industries are two of the most fuel efficient LPG carriers ever built, in addition they are some of the world’s largest ships for transporting liquefied petroleum gas.