Lorentzen & Stemoco (L&S) is rebuilding after suffering losses, especially on the dry bulk side in Singapore last year.
In spite of this, the Oslo-headquartered shipbroker is recruiting in key areas like its sale and purchase, projects and newbuilding departments.
L&S posted a loss of NOK 16m ($1.8m) for the full year 2018, compared to profit of NOK 800,000 in 2017.
The loss was largely due to a NOK 11m writedown related to the restructuring of its Singapore office, where activities have been scaled down.
L&S has primarily worked spot chartering in Singapore, but that has not been a success lately.
“The city is overbrokered," Wilhelm Holst, L&S's chief executive, told TradeWinds.
Keith Denholm, who was recruited for the L&S Singapore office less than two years ago, left the company for personal reasons.
Elsewhere in Asia, L&S has built up a staff of 11 people in its Beijing office, of whom eight are brokers.
"Business in China has been slower this year, but we have high expectations there," Holst said.
The company’s revenues have fallen sharply in recent years. In 2016, L&S had revenue of NOK 59m, while revenues in 2018 was just NOK 33m.
Holst says it is too early to say how the results will be in 2019, but he is very pleased with the recruitment of Christian Andersen as company chairman.
According to Holst, Andersen will be an active chairman and has already joined the firm.
“We do not have ambitions of being among the largest broking houses, but but becoming better at what we do," he said of the company's aims.
In Oslo, L&S quit spot broking in 2017 and last year the company left the segment completely when veteran Anders Lalim departed for Galbraith’s.
“We will not return to that segment," Holst said.
Stemoco Shipping was formed in 1985 and merged with Lorentzen Chartering to become Lorentzen & Stemoco in 1994.
