Diversified Norwegian company JB Ugland Holding suffered a sharp fall in profit last year as it had to lay up one of its car carriers in the face of the market slump.
The Grimstad-based company said pre-tax profit slumped to NOK 9m ($1.1m) in 2020 from NOK 217m a year earlier.
The 1,220-ceu Premier (built 1997) has been redelivered by its charterer, United European Car Carriers.
JB Ugland chief executive Johan Martin Ugland said the vessel is now in lay-up in Bristol, southern England.
"Large cuts in the production of cars worldwide [have] led to uncertainty in the car carrier business short-term," he said.
Some 35% of the company's equity is shipping, which comprises five wholly owned car carriers between 950 ceu and 2,000 ceu and a 41% stake in the 1,164-ceu La Surprise (built 2000).
Until the Premier was handed back, all its ships had been on bareboat charters, which had insulated the company from the market slump.
At the end of 2020, JB Ugland had book equity of NOK 1.07bn — almost unchanged from a year earlier.
JB Ugland Holding is controlled by Johan Martin Ugland's father, Johan Benad Ugland. It sold most of its shipping activities at the peak of the market in January 2008 to India's Siva Group for $300m.
With shipping now a minor part of the company, its other assets include real estate, renewables and other investments.
Johan Benad Ugland is a third-generation shipowner. He is the eldest son of the late Andreas KL Ugland, whose father, Johan Milmar, established Uglands Rederi in 1930.
