Norway's Det Stavangerske Dampskibsselskab (DSD) received more than NOK 2bn ($200m) in proceeds for its sale of compatriot ferry operator Norled.

The sum pocketed by Stavanger-based DSD was revealed in its results for 2019, which have just become publicly available.

The figures suggest a total price for Norled of NOK 4bn, including debt assumed by the buyers, which is somewhat higher than initial price reports.

DSD, a diversified company whose portfolio includes tanker owner DSD Shipping, forged the sale of its ferry subsidiary in May 2019.

Price is confidential

The Yuhong Hermansen-controlled outfit sold Norled to Nordic infrastructure fund CapMan Infra and Canada’s CBRE Caledon Capital Management. The buyers, which each took 50% of Norled, are not disclosing the price.

Last week, DSD told Finansavisen it is not willing to confirm the price of the sale, although last year the Norwegian financial daily reported that Norled had changed hands for NOK 3bn.

The transaction helped DSD deliver its best annual result ever with a pre-tax profit of nearly NOK 1.01bn for 2019, up from NOK 109m in 2018.

"The main explanation on the improved results is the gain from the sale of the ferry and speedboat company Norled in the summer of 2019, combined with a solid contribution from Norled in the months the company was owned by DSD," the outfit announced on its website.

DSD chief executive Ingvald Loyning said the sale of Norled was "financially correct" for the company.

"Now we will continue to use the sales proceeds to strengthen our business in the industries where we already have solid expertise — which is mobility, maritime and tourism — as well as joining new technological and sustainable companies in the marine sector and health," he said.

Tanker newbuildings

The proceeds may help DSD Shipping pay for a series of MR tanker newbuildings on order at Vietnam’s Hyundai Vietnam Shipbuilding, which is part of South Korea's Hyundai Heavy Industries Holdings. The ships are costing $32m each, plus the cost of installing scrubbers. One vessel was delivered last year and the other three are set for handover this year.

Hermansen, who is the widow of late DSD owner Folke Hermansen, told Finansavisen that she is confident Norled will continue its positive momentum under its new owners.

Eric Martin contributed to this story