Norway’s diversified Hesnes Group reported a drop in profits for 2019 as the company’s open-hatch bulkers continued to operate in a weak market.
The group's pre-tax profit last year dropped to NOK 20m ($2.25m) from NOK 36m in 2018.
Revenue fell from NOK 234m to NOK 191m. Hesnes had a book equity of NOK 494m at the end of 2019.
As the group's bulker operations took a hit in last year's result, its bunker broking business Norwegian Oil Trading had a strong year in 2019. The 2020 result is expected to be in line with the subsidiary's figures from last year.
But sister subsidiary Hesnes Shipping's car carrier broking business has been hard hit by the coronavirus crisis so far this year.
Chief executive Pia Harneshaug said the car carrier business has been hard hit by Covid-19 and that the market is still weak.
"We expect that the result in this segment will reflect the challenges one has in this market," she said.
Harneshaug was recently named group chief executive after a 30-year career at the company.
Asked of the new role, she said: “It is exciting, but I know the company well. I like that there is much happening and new challenges and it is a privilege to work with so many clever and dedicated colleagues with much competence and experience.”
Hesnes is controlled by Paal Smith-Kielland, 72, and his two daughters, Kaja and Ida. The company, which was set up in 1974, owns three open-hatch bulkers built between 1994 and 1997 that operate in a pool with Saga Welco.
Smith-Kielland and his daughters sit on the company board as well as Harneshaug, Klaveness Marine's Jon Christian Syvertsen and chairman Odd Gleditsch. In 2016, Smith-Kielland transferred the majority of the shares to his daughters.
