SPT - The Shuttle Tanker Activities reported a satisfactory overall performance and achieved acceptable results after a challenging period in the beginning of the year. SPT continues its focus on customer service and specially our 'on time performance', which are amongst the key drivers for the results.
The Gas Activities, and chief amongst these Norgas, are showing improved results in 2Q03 vs. the prior three quarters on EBITDA basis. There are growing signs of improved earnings from the markets due to our improved contract position. The level of the cost of operations during 2Q03 is in line with our program for this year in order to achieve a further reduced EBIT break-even level. Maintaining a high level of competitiveness continues to be the key focus for Norgas. A further recovery for Norgas is depending a lot on the possible recovery in global industrial activity and thus the economy. The global economy has not recovered from the "boom" and the "bubbles" of the 1990s. This combined with wars in Iraq and Afghanistan and a series of corporate scandals, has made this economic slump the longest since after the World War II, although it remains a mild economic slump. Most forecasters have been predicting a return to healthy growth since early last year, only to be surprised by the depth of problems created from the "bubble" and from oversupply in global stocks and effects from business over spending, and particularly from the technology sector. The economy has recently shown signs of improvement, including increases in manufacturing activity and retail sales. There is a lot of stimulus in the "pipeline" already so it is very reasonably to think that growth is going to be stronger in the second half of this year.
The IMS share price has increased 10 % since 1 January 2003 and 2.6 % in the last 12 months. In March 2003 a dividend of NOK 7 per share was paid (USD 0.96). Including the dividend the 12 months yield has been 13 %. The Oslo Stock Exchange Benchmark Index (OSEBX) declined by 8.7% and the OSE Transportation Index (OSE2030GI) declined by 8.8 % during the same period.