Umoe Group has turned a stable profit in its LNG carrier outfit despite a group-wide loss.
Contrary to other business segments in the Norwegian group, Umoe Gas Carriers — the Jens Ulltveit-Moe-controlled company’s only involvement in shipping — has just reported a pre-tax profit of $9.9m for last year, down from $11.2m in 2017.
The company had a book equity of $95.1m at the end of 2018.
As of the end of last year, Umoe Gas had a 50% stake in five modern LNG carriers. The ships are owned together with compatriot partner Knutsen OAS Shipping, which manages the vessels. The ships are all on long-term charters of 20 to 25 years to oil and energy companies.
Half-ship sale
However, the annual report said Umoe Gas last year sold a 50% stake in one ship to Knutsen. TradeWinds understands that this is the 138,000-cbm Sestao Knutsen (built 2007).
The price is unclear, but VesselsValue estimates a vessel of the Sestao Knutsen’s characteristics is worth $61.4m.
Ulltveit-Moe, Umoe Gas' chairman and main shareholder of the group, declined to comment on this sale.
Umoe Gas’ stable profit — a result of its focus on long-term charters — was in contrast to its sister companies in the Umoe group.
The group-wide parent company, Umoe AS, last year logged a pre-tax loss of more than NOK 598m ($70.4m), against a loss of just under NOK 129.8m in 2017.
although it has a long history in shipping, Umoe is now heavily involved in the renewable business and restaurants in Norway, Sweden and Denmark.
