Norway's Utkilen has reported growth in profit as the chemical tanker owner continues to renew its fleet with newbuildings.
In its recently released annual report, the company posted pre-tax profit of €16.2m ($18.1m) for 2018, up from €13.8m in 2017.
Revenue increased from €58.4m to €64.8m, while the company completed the year with book equity of €127.3m.
The board said that the financial position of the Bergen-based group “is satisfactory”.
They are advanced ships and more environmental friendly that the ships that are in the market
Siri-Anne Mjaatvedt
The stable results come as the shipowner pursues a newbuilding programme that will see it complete delivery of eight ships from yards in China and Japan.
Exhaust gas cleaning systems
Utkilen has decided not to install scrubbers on the four 9,900-dwt ships and four 19,900-vessels.
“They are advanced ships and more environmental friendly that the ships that are in the market,” said Siri-Anne Mjaatvedt, who was hired as chief executive from compatriot owner Odfjell last year.
The 19,900-dwt stainless-steel tankers were delivered in 2018 and 2019 from Fukuoka Shipbuilding in Japan.
Utkilen's subsidiary Stream Shipping reportedly paid between $33m and $34m each for the vessels.
Utkilen prefers substantial contract coverage for its newbuildings.
TradeWinds understands that two of the 19,900-dwt ships were chartered by Fairfield Chemical Tankers and two by compatriot operator Chembulk Tankers.
These charters are limited to about a year, as Utkilen wants flexibility to conclude new employment if the market picks up.
The 9,900-dwt stainless-steel tankers are under construction at China’s AVIC Dingheng Shipbuilding and set for delivery in 2019 and 2020.
They are reportedly costing $25m each.
Mjaatvedt said the company plans to replace older ships with newbuildings.
Tanker sale
In February, Utkilen sold the 4,700-dwt tanker Sundstraum (built 1993) to Fjord Shipping of Norway in an undisclosed deal. Utkilen still has 10 tankers that were built before 2000.
Ove Utkilen and his family hold 98% of shares in the company and chairman Bjorn Sjaastad has a small stake.
Looking forward, Mjaatvedt said she expects stable revenues this year and adds that Utkilen is fortunate because newcomers face high barriers of entry for the company’s core market in northern Europe.
