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IM Skaugen hit by Middle East shut downs

IM Skaugen hit by Middle East shut downs
Oslo: Gas transportation company IM Skaugen (IMS) today announced a drop in gross revenues and profit in the first quarter of 2013.

IMS's profits from Norgas Carriers and its share of Somargas and Singco Gas totalled $4.1m for the first quarter 2013, down from $6m in the same period of 2012. Their share of revenues also fell from $38.3m in first quarter 2012 to $30.7m in the first three months of 2013.

"The performance of our gas transportation activity was disappointing in the first quarter of 2013" the company said in its earnings release.

"A number of unplanned shut-downs of petrochemical plants in the Middle East replaced long haul trades with short haul trades for the commodities that we carry and with loss of ton miles as a result." it explained.

Just outside of the quarter, 8 April saw the release of Norgas Cathinka from its 194 day detention in Indonesia. The detention followed a collision between Norgas Cathinka and a ferry, Bahuga Jaya, in the Sunda Strait in Indonesia on 26 September 2012. The ferry subsequently sank, leading to the loss of six passengers and one crew member from the ferry, with two passengers also reported missing.

An out of court settlement has been paid to the ferry owners from IMS and its insurers. However, two crew members of the Norgas Cathinka remain under detention in Indonesia. "We are working hard with all relevant entities to secure the earliest possible release of our two crew members still in Indonesia," the company said.

Looking ahead the company is cautiously optimistic, expecting exports from the Middle East to recover and earnings for its vessels to rise above those in the first quarter.