IMSK - 1 Quarter 2005

The I.M. Skaugen Group (IMSK) has a pre-tax result of US$ 11.9 million for 1Q05. This compares to a profit of US$ 4.6 million in the 4Q04 and US$ 0.9 million in the 1Q04. The result of the quarter on an EBITDA basis amounts to US$ 13.9 million (US$ 10.6 million in 4Q04 and US$ 4.1 million in 1Q04).

 

The rather encouraging performance of I.M. Skaugen, which commenced with strength in the second half of 2004, has continued into the first quarter of 2005. A number of key customer contracts have been renewed in this period and with improved trading conditions at present, the outlook for the Group is positive.

 

The company's key business areas are - Norgas, the gas transportation operation and SPT, the shuttle tanker activities. The Norgas activities, which also includes our China operations, have continued its attempts to achieve a reduction in the overall "EBIT break-even levels" and has succeeded over time while the earnings on t/c basis have improved and the net effect being large improvements in the EBITDA earning capacity.  At the same time they have maintained industry-leading levels of customer service, safety and dependability, placing all of the Group's business units at the heart of their customers' total logistics operations.

 

The operating alliances I.M. Skaugen has with Teekay and A.P. Møller-Mærsk continue to perform well, both giving competitive global market advantage to SPT and Norgas, respectively.

 

A contract was signed during the first quarter at a Chinese shipyard south east of Shanghai for the building of two new 3200 cbm LPG carriers and at an estimated total price of US$15 million for the two. Delivery is expected to be during the second half of 2006.  These vessels will be an important part of the I.M. Skaugen fleet as the company seeks to increase both its domestic transportation services for the import and export of LPG, petro-chemical gases and other products in China.

 

Between 1st January 2005 and the end of the quarter the I.M. Skaugen share price rose from NOK154 to NOK180 - a yield of 21 per cent including the dividend paid in March'05 equal to NOK 7.50 per share.

 

The accounts of I.M. Skaugen ASA are as from 1. January 2005 presented in accordance with International Financial Reporting Standards (IFRS). The changes in accounting standards effects, among other things, are presented in the Transition to International Financial Reporting Standards document. The results for 2004 have been prepared in accordance with IFRS. Previous periods presented in the report are in accordance with NGAAP.