Spar Shipping has seen its bottom-line result return to the black as the Norwegian bulker owner also reported it is continuing to pursue a claim against Grand China Logistics for more than $30m.
The company's annual report for 2017 shows a pre-tax profit of NOK 152m ($19m) compared with a NOK 178m loss in 2016. Operating revenue increased to NOK 671m from NOK 454m in 2016.
Book equity stood at nearly NOK 1.35bn at the end of 2017, and the annual report says Spar's board of directors is cautiously optimistic for the times ahead.
But the privately owned company continues to chase a claim against Grand China for unpaid charter hire on several Spar bulkers for a number of years in the UK court system. After an appeals court upheld its final judgment two years ago, Spar has taken steps to have the judgment accepted in China.
Grand China, which is part of the HNA Group, still has not paid up.
Spar has also secured attachment of Grand China’s assets in Norway including Lotus Marine, which owns 33.3% of Arne Blystad’s heavylift company, Offshore Heavy Transport. It previously threatened a claim against broker RS Platou, which is now part of Clarksons, for its role in the deals.
In its latest report, Spar's board says the company will continue to pursue the creditor and "parties that are behind them”.
The long-term charter contracts, which were to last for three to five years, were concluded in March 2010 for the 58,000-dwt bulkers Spar Capella and Spar Vega (both built 2011), and Spar Draco (built 2006). In the autumn of 2011, Spar had to take the three vessels back.
Spar is controlled by the Eide Knudsen family and is traditionally a tonnage provider, but has now built up a chartering organisation of its own.
The company has a fleet of 24 supramax and ultramax bulkers. The newest ships in the fleet are six ultramaxes delivered from China’s Jiangsu Hantong Ship Heavy Industry in 2015 and 2016 at a cost of between $24m and $25m each. They have all been fixed for five years to giant German utility RWE.
The company was set up by retailer Helge Eide Knudsen in 1990. When he died in 2015, he was one of the wealthiest people in Bergen, with assets calculated at NOK 7.2bn, but he insisted on not being called a shipowner.
His sons, Tom and Iwan Eide Knudsen, are both heavily involved in Spar.
