SKA - Annual general meeting I.M. Skaugen ASA, 5 March 1998

In a General Meeting of I.M. Skaugen all items listed were disposed of as proposed in the summons. Morten Arntzen (new) and Morits Skaugen jr were elected board members for a period of two years and Egil Abrahamsen was elected for a period of up to one year. Egil Abrahamsen was appointed Chairman of the Board. Morten Arntzen (42 years) succeeds Tore Steen (72 years) on the Board of Directors. During the meeting a report on activites was submitted, including the prospects for 1998: NGC activities, with transport of petrochemical gases, have a contractual coverage of 50% for 1998, making the level of profitability more predictable than in 1997. NGC`s earnings in Asia are somewhat improved compared to 1997. SPT continue their positive development, and contracts with major customers have been renewed at improved rates. These two segments comprise the predominant share of the Group`s earnings.

On 5 March 1998 the General Meeting approved the Board of Directors` Report with Accounts. The Group`s EBITDA profit was NOK 116 mill in 1997 (NOK 129 mill in 1996). Net profit for 1997 was NOK 30 mill (NOK 107 mill in 1996). No dividend was declared for 1997. For further details please see the company`s Annual Report and the press release dated 16 January 1998.

The General Meeting re-elected Egil Abrahamsen and Morits Skaugen jr as board members. Morten Arntzen (42) was elected new board member to succeed Tore Steen (72), who wished to retire from the Board due to his age. Tore Steen has been a board member since 1991, when he was elected to the board of Skaugen PetroTrans AS.

Morten Arntzen has broad international experience through his work in Oslo, New York and London, which has also given him shipping experience. Following a career in Manufacturers Hanover Trust, Chemical Bank and Chase Manhattan Bank, he is presently living in the U.S. In 1997 he was engaged as CEO by American Marine Advisors, an investment bank targeting the international maritime industry.

Egil Abrahamsen has been elected to the board for a period of up to one year, while the other two members are elected for a two year period. The Board held a constituting meeting immediately after the General Meeting and re-elected Egil Abrahamsen as chairman. Egil Abrahamsen has expressed a desire to retire from the Board for the same reason as Tore Steen, but has been prevailed upon to serve for another, possibly shorter period, until a new board chairman may be elected.


The General Meeting was given a presentation on the Group`s activities, from which we exerpt:

  • Over the past months the NGC pool has renewed one time charter (T/C) and signed two contracts of afreightment (COAs) with major customers. One contract covers the year 1998, one extends well into 1999 and the third extends throughout the year 1999. Contract rates exceed the average rates achieved in 1997. Following this, contractual coverage for NGC, the main segment, stands at approximately 50% for 1998, markedly up from 1997. On this basis, it is anticipated that the average freigth rate for NGC in 1998 will not drop compared to 1997. However, uncertainties are related to developments in Asia, although NGC earnings in Asia (approximately 40% of capacity) so far exceed last year`s.

  • Skaugen PetroTrans (SPT), who engage in the ship-to-ship transfer of crude oil, continue their positive development into 1998. Contracts with the most important customers were renewed in 1997 at improved rates.

  • TNGC, the Group`s joint venture effort in the field of LPG transport on the Yangtse river in China, is expected to become operational during the first half of 1998. The project is expected to show a profit in 1998, although not all formalities in China will have been cleared before the transport units are ready for operation.

  • The three chemicals vessels in Princess Carriers, also operated out of Shanghai, are directly exposed to the unstable market conditions in Asia and the rates are still weak. This influences the earnings within this segment. However, the earnings of Princess Carriers have only a modest impact on the Group`s earnings.

  • A number of positive news items relate to the development of our new activities in SPT Marine Services (SPTMS) and Gas Recovery Systems (GRS). These activities may have a positive impact on the Group`s profit even in 1998, but both enterprises still show only a modest turnover.
    If you have further questions, please contact Jan-Ivar Thomas, tel. 22 83 30 60, mobile phone 915 35682 or via e-mail: jan-ivar.thomas@ngc.no or X.400:G=JAN-IVAR;S=THOMAS;P=NGC;A=TELEMAX;C=NO. This press release is also accessible via Internet: http://www.huginonline.no/SKA

    Oslo, 5 March 1998

    BOARD OF DIRECTORS
    I.M. SKAUGEN ASA