I.M. Skaugen ASA (IMS) reported a result before tax of MUSD 1.3 for 2000 (minus MUSD 6.2 for all ’99 and minus MUSD 13.8 for all ’98) and a result before tax for the group of minus MUSD 0.7 for 4Q00 (minus MUSD 2.4 for 4Q99 and minus MUSD 6.6 for 4Q98). The EBITDA result for the Group was MUSD 24.2 for 2000 (MUSD 14.9 for 1999 and MUSD 10 for 1998) and MUSD 6.4 for 4Q00 (MUSD 3 for 4Q99 and MUSD 1.4 for 4Q98). The 4Q00 results compared to 3Q00 has been marked by somewhat improved SPT earnings and somewhat lower freight rates and corresponding idle time for NGC. Fuel cost remained high due to the high oil price levels.
The year 2000 was a year with improved profitability and a profit for the Company. Our EBITDA result was about 60% above the year before, and the outlook for 2001 is considered satisfactory despite of some turbulence on the near horizon regarding the world-wide economy. NGC experienced improved trading conditions with higher freight rates while achieving a further reduction of its operating cost levels. SPT rode off a volatile Aframax market and experienced another satisfactory year. Our activities in China were instrumental in securing lower cost of operations in addition to fleet renewal for NGC.
The last five years have been marked by very difficult trading conditions in our business segment and this combined with declining asset values mostly due to the replacement cost of vessels with reduced newbuilding prices of about 35%. Nevertheless, we have still during these 5 years managed to repay MUSD 70 of our debt and MUSD 40 to our shareholders - a total of MUSD 110. We are hopeful that the overall conditions are improving for our type of business, and that we, in addition to repaying debt and paying out to shareholders by dividend and purchase of own shares, can generate funds to further renew and refocus our business.