On September 11th IMS announced the joint venture with Teekay Shipping Corp. to jointly operate and expand its "ship-to-ship transfer" business and by Teekay buying 50 percent of its wholly owned business unit; Skaugen PetroTrans (SPT). We believe Teekay is an ideal partner with whom we can continue to grow the very specialized business of SPT. SPT commands a position of the customers preferred choice for the "ship to ship transfer" business and is the largest in the world in this specialized trade. The agreed price for 50 percent of SPT comprises of a cash payment of USD 25 million upon commencement and an "earn-out element", which shall be calculated based on six times the average annual EBITDA from the current SPT core business in excess of USD 9 million (on 100 % basis) and over the next five years.
On September 29th IMS announced its alliance with A.P.Møller - Maersk for Gas Carrier Transportation Services (MNGC). This new development has been long sought after to further improve the performance of the Norgas fleet of gas carriers that we own and operate. Focusing on both improving services to our customers and achieving cost leadership in this segment - and the new alliance with "Maersk" will enable us to achieve significant progress within both areas.
I.M. Skaugen has by these two alliances placed its two business units in a "No 1 position" in the world and enhances their market leader position. The challenge is now to further grow and develop the business units within the alliances.
SPT - The Shuttle Tanker Activities reported a satisfactory overall performance in 3Q03 giving improved results after a most challenging period in the beginning of the year. SPT continues the focus on customer service and specially our 'on time performance', which are amongst the key drivers for the results.
The Gas Activities, and mainly Norgas, are showing improved results in 3Q03 vs. the last four quarters on EBITDA basis. The cost level for 3Q03 is in line with our program for 2003 to achieve a further reduced EBIT break-even level. Maintaining a high level of competitiveness continues to be the key focus for Norgas.
The IMS share price has increased 46 percent since 1 January 2003 and the yield has been 107 percent in the last 12 months. In March 2003 a dividend of NOK 7 per share was paid (USD 0.96). The Oslo Stock Exchange Benchmark Index (OSEBX) increased by 29 percent and the OSE Transportation Index (OSE2030GI) increased by 44 percent during the same period.