Solvang ASA 4th quarter report 2012
27.02.2013Shipping activities yielded NOK 19.8 mill in Q4 2012, where NOK 19.4 mill came from the ship-owning companies (equity method), compared to NOK 14 mill during the same period in 2011, where the ship-owning companies contributed with NOK 14.9 mill. The full year 2012 yielded NOK 59.7 mill, where NOK 57.6 mill came from the ship-owning companies, compared to the result for 2011 of NOK 38.4 mill, where the ship-owning companies contributed NOK 36.4 mill. The result before tax for 2012 was NOK 64.1 mill compared to NOK 14.2 mill for 2011. The securities portfolio contributed with NOK 0.8 mill, compared to a loss of NOK 32.6 mill for 2011. The Board propose a dividend of NOK 0.5 per share.
On time charter basis Solvang's share of freight earnings for fourth quarter 2012 were NOK 52.1 mill compared to NOK 50.9 mill for same period in 2011, an increase of 0.2%. For the full year 2012 the freight earnings were NOK 196.9 mill, compared to NOK 174.1 mill in 2011. The Baltic Index dropped from an average of around USD 68/ton in fourth quarter 2011 to an average of around USD 44/ton in fourth quarter 2012. The average rate / ton for the full year 2012 were USD 56/ton, compared to USD 55/ton for 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 high until the latter part of September on high freight volumes from Saudi Arabia, with the addition of strong export growth from Qatar, UAE and Kuwait. However, towards the end of the third quarter there was a significant reduction in volumes from Saudi Arabia and Kuwait, as well as maintenance shutdown from Qatar. This resulted in several open VLGCs, which in turn put rates under pressure. The quarter ended with a Baltic Index of USD 56/ton, the equivalent of USD 800K per month, which is in line with 2011. The downward pressure continued throughout the fourth quarter and into the first quarter 2013, mainly from the maintenance stop in Qatar.
Panamax VLGC 75k cbm
LGC 60k cbm
Ethylene 12-17k cbm
The Solvang group's security portfolio has a book value of NOK 74.2 mill as per 31.12.2012. Solvang is responsible for the management of the portfolio, with a conservative investment strategy. The stock market improved considerably throughout the third and fourth quarter, and led to a positive value adjustment for end 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 has completed three scheduled classification dockings in 2012. In 2013 there are 10 ships due for classification dockings.
Stavanger, 27 February 2013
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.