I.M. Skaugen ASA (IMS) reported a loss for the group of USD 2.4 mill for 4Q99 (minus USD 6.6 mill for 4Q98) and a loss of USD 6.2 mill for all ’99 (minus USD 13.8 mill for all ’98 and positive USD 12.7 mill for 1997). The EBITDA result for the Group was USD 3 mill for 4Q99 (USD 1.4 mill for 4Q98) and USD 14.8 mill for all ’99 (USD 10 mill for 1998 and USD 16.4 for all of 1997). The 4Q99 result compared to 3Q99 has been marked by somewhat lower SPT earnings and somewhat lower freight rates for NGC. One NGC vessel was offhire in 4Q resulting in loss of revenue.
We have reached a key financial goal for the group; to operate through this low cycle for our industry, and specially for NGC, with our key financial balance sheet ratios unchanged with the cash flow contribution from operations. Despite the much weaker market for NGC during the year, IMS achieved an improved bottom line and EBITDA result compared with 1998. This dramatic improvement compared to the last low cycle (1992/93) in our business segments is attributed to the strategy of the group becoming the “Cost and Service” leaders of the business. This has resulted in much lower operating cost levels for the business units and their improved operating performance as well as reduced Group overhead costs. The improvements at NGC are specially evident on the marketing policy implemented and operating costs, and this will yield NGC better margins when a recovery is made in the market.
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