The Kistefos Group’s profit jumped in the first half of this year due to improved results in Viking Supply Ships and Western Bulk Chartering.
The profit after tax was NOK 804m ($76m), up from NOK 331m in the first half of 2023.
The increase in profit was also driven by the fact that Sea1 Offshore was consolidated for the first time from and including May 2024.
Viking had a profit after tax of SEK 157m ($15.34m) compared with SEK 3m in the same period the previous year.
Western Bulk achieved a profit after tax of $2.5m compared with a loss of $4.8m in the same period last year.
Sea1’s profit contribution was $16m after tax for the Kistefos Group for the first half of the year
On 5 April, Sea1 signed an agreement for the sale of nine ships. The transaction was completed and the ships transferred on 5 July.
As a settlement, Sea1 received 35.7% of the outstanding shares in Sea1.
Kistefos’ ownership in Sea1 increased to 51.83% as a result of the transaction.
Sea1 operated a fleet of a total of 29 ships by the end of the first half.
On 6 August, Viking announced it would outsource management of its ships to Sea1 from October.
The agreement is expected to provide significant cost savings for the company from the first quarter of 2025.
Viking’s shares will continue to be listed on Nasdaq First North, Kistefos said in the report.
Kistefos sees “some increased offshore activity” in the first part of the second half of 2024, “but the market is expected to weaken during the autumn and winter, which is normally the low season in the spot market”.
“In the longer term, increased activity is likely as more projects are initiated in the North Sea and internationally, which is expected to lead to generally higher demand for AHTS [anchor-handling tug supply] tonnage and lower supply of vessels in the spot market in the North Sea. The result for VSS is expected to be significantly lower for the second half of the year compared to the first,” the report said.
“For Sea1 Offshore, the high contract coverage for a significant part of the fleet provides stable revenues, although revenue from the AHTS fleet will fluctuate,” according to the report.
Kistefos said: “Western Bulk is well positioned for the second half of the year, and we now expect the company to benefit from the foreseen market volatility going forward and end 2024 with solid results.”
Western Bulk “has a clear market view into the second half of the year”.
Kistefos has a diversified investment portfolio comprising businesses across a range of industries, including financials such as Advanzia Bank and Morrow.
Its total balance sheet assets were NOK 71.6bn on 30 June.
