Somewhat lower EBITDA result than expected for I.M. Skaugen in 4q99 than what we stated that we expected in the 3q99 report. 2h99 is expected to be better than 1h99 for I.M. Skaugen - especially for NGC.
The variance in expectations from the 3q99 report is mainly due to somewhat reduced earnings in SPT in 4q99. We consider this reduction to be of a seasonal character and not permanent. Total EBITDA for 1999 for SPT is expected to be approx. USD 11.7 mill.
The NGC earnings on EBITDA basis are better than for 1q99 and 2q99, but somewhat lower than for 3q99 - expected EBITDA result for NGC in 2h99 is USD 4.3 mill vrs USD 1.5 mill in 1h99.
Further, the NGC earnings are somewhat lower than expected partly due to lower freight rates and because one vessel has been offhire during the quarter. This is due to an engine breakdown which entails loss of revenue. We further consider, however, that the positive trends, which are seen in NGC's business segment, are present, and we still expect that we are in the beginning of a cyclical rebound in this market which is of a fundamental character and which, in addition to possible consolidation effects, will give results which are positive for us in relation to the last years weak earnings.
In total we expect for I.M. Skaugen that the EBITDA level for 2h99 will be approx. 60% better than for 2h98. I.M. Skaugen ASA will report preliminary result for 1999 on 17 January 2000.