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The I.M. Skaugen group reported a pre-tax result of MUSD 1.4 in 3Q04 (MUSD minus 1.6 in 2Q04 and MUSD 23.0 in 3Q03 including a gain from sale of assets of MUSD 20.2). The result on EBITDA basis is MUSD 7.5 for this period, accumulated at MUSD15.8 (MUSD 3.8 in 2Q04 and MUSD 9.3 in 3Q03). With current development in cost and markets in general we now predict the result on EBITDA basis, for the full year 2004, to be at about the same level as in 2003.
The Gas Activities, and mainly Norgas, has showed improved results in 3Q04 vrs 1H04 and we expect this trend to continue into 4Q04. Improvements have been seen in the market with an increased demand for transportation and small amount of idle days for the Norgas vessels. More petrochemical gases and specially ethylene is also expected to be shipped in the coming years and we see a possibility of "rebirth" of certain long haul trades for the petrochemical cargoes in general. Based on recent trends and projections the longer-term market outlook, for the markets served by Norgas, is considered positive.
SPT - The Shuttle Tanker Activities reported acceptable overall performance despite a real challenge to secure crude oil tanker tonnage needed at affordable rates. SPT enjoys a position of being an integral part of our customers' logistic chain. SPT continues the focus on being a "High Reliability Organization" (HRO) characterized also by superior customer service, a "can-do-attitude", and very high internal expectations for safety, punctuality and dependability. These factors are among the key drivers for the results
The outlook for IMS is considered positive. We formed two key strategic alliances in 4Q03, with Teekay re SPT and with AP Moller- Maersk re Norgas. These should further advance the IMS strategy and enable us to capitalize even further on our past accomplishments. With these two alliances, with acknowledged world-leading companies, place both of our key business units in prime global positions.
The IMS share price increased 8 percent since 1 January 2004 and 39 percent in the last 12 months. Including the dividends the 12 months yield has been 57 percent. In March 2004 a dividend of NOK 7 per share was paid (USD 1) and in Nov 2003 an extraordinary dividend of NOK 13 per share was paid (USD 1.85).
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