IM Skaugen improving after 1H repositioning losses

The company's EBITDA for the first three quarters was negative $7.3m, down from a positive contribution of $8m in the same period in 2013.

While still in the red at a $1.5m loss, the EBIT result for the group's core business, gas carrier outfit Norgas Carriers, was an improvement on the previous quarter's $2.9m loss.

Norgas Carriers is undergoing the effects of a change of strategy earlier this year, which saw the company's business move West of the Suez Canal. The repositioning of the fleet away from the Gulf meant the loss of a significant contract, but the company said its 15 gas carriers are beginning to see improved time charter equivalent earnings as a result of the move.

Outside of the quarter in October, 10,200 cu m LPG/Ethylene carrier Norgas Napa was sold to Teekay LNG Partners for $27m. The vessel will be leased back for five years with a profit sharing agreement in place when it is delivered in November 2014.

The Norgas Napa will be one of six vessels on long term bareboat charters to IMS for Teekay.

In its outlook IMS sees improved utilisation in the 8,000 - 22,000 cu m gas carrier segment, driven by increased LPG exports from the US and an expected surge in exports of petrochemicals from Europe to Asia.

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