I. M. Skaugen's wholly owned subsidiary, Skaugen PetroTrans Ltd. will declare its option for the purchase of 3 work boats (LSV ships) which the company has been operating on a financial lease. The transaction is a step in the further efficiency improvements of SPT's operation. Simultaneoulsly, SPT has signed a long term lease contract for a quay area near Galveston, which will serve as a new base for the work boats. The company further announces the sale of a fourth work boat, the Gulf Relentless. The sale will yield a profit of NOK 20 mill. to I. M. Skaugen in the 4th quarter 1997.
As part of an ongoing process of efficiency improvement and restructuring, SPT have decided to declare their option for the purchase of the LSV-ships Gulf Guardian, Gulf Protector and Gulf Defender. The ships are presently on a financial lease to SPT. Through direct ownership of the LSV-ships, SPT will be able to exercise a more direct control with ownership as well as operation. The ships will sail under the American flag. This will be of value in the further development of the company's standards of service and quality.
After ownership transfer, the ships, approx. 180 feet in size with main engine power of 2250 BHP, will be owned by a recently established subsidiary in the US. Their use will be limited to supporting SPT's lightering operations, carrying fenders and personnel, as well as acting as stand-by during operations, ensuring safety.
The boats may also assist Oil Spill Response Organizations (OSRO) in case of fire fighting and possible oil spills. The vessels may not be used for transport between harbors in the United States, the so-called Jones Act trade, or for activities in connection with offshore oil installations in the US Gulf. Staffing, as well as technical follow-up of the ships, will be handled by an American company under SPT's direction. The transactions will not affect the P&L statement. The 3 LSV workboats will be accounted for NOK 2 mill. in the company balance sheet.
Simultaneously, it has been decided to sell the fourth LSV-workboat, the Gulf Relentless, built in 1971. The transaction will yield a book profit of NOK 20 mill. in the 4th quarter of 1997. Short term, the Gulf Relentless will be replaced by the lease of another suitable vessel for SPT. The Gulf Relentless is well suited for the so-called Jones Act trade, and the sale price reflects the fact that that this market currently shows a positive trend.
SPT holds a market share of more than 40% of the lightering operations in the US Gulf. As a part of this work and in connection with efficiency improvement of the lightering operation, SPT has succeeded in signing a favorable, long term lease of a quay area in Freeport, Texas. The area will serve as a new base for the lightering support vessels.
In order to make the most of the market knowledge possessed by SPT as well as Norwegian Gas Carriers (NGC), a new company, SPT Marine Services (SPTMS), was established in the spring of 1997. SPTMS offers, among other things, a cost and time saving concept for the cleaning of gas and chemicals vessels, so-called purging. The company also lets fenders for ships and provides lightering operations in areas outside of the US. The company is now active in the American Gulf as well as the Arabian Gulf. Operations in the American Gulf are based in Galveston, Texas.
If you have questions, please contact Jan-Ivar Thomas on telephone 22 83 30 60 or e-mail: jan-ivar.thomas ngc.no,
or X400.G=JAN-IVAR;S=THOMAS,P=NGC;A=TELEMAX;C=NO.