The conservative strategy of tradition-rich Norwegian shipowner Lorentzens Skibs appears to being paying off with rising profits and stronger reserves.
The diversified Oslo-based shipowner has reported another profitable year in 2019 with pre-tax profits increased to NOK 49m ($5.5m) from NOK 42m a year earlier.
Meanwhile, the company's book equity increased to NOK 374m ($41.5m), according to the annual report for 2019 for the private company which has just become publicly available.
Chief executive Nicolai E Lorentzen suggested there are further “reserves in the balance [sheet]”, so that the adjusted equity is higher.
Group holding company Jamlo has roots dating back to 1826 and is owned by Lorentzen, and his brother and sister.
Lorentzen says he was “relatively happy” with the results last year. The board stated that Jamlo has a “good economic and financial position”, but that markets are uncertain in the company’s business areas. Jamlo still expects high investment activity in 2020.
It has a cautious dividend policy and did not pay dividends to shareholders last year. Lorentzen controls the voting A shares, but he says the family members agree on the dividend policy.
Besides shipping, Jamlo has investments outside shipping, including tourism and management services.
Jamlo has a diversified fleet of 14 ships, owned by different limited partnership companies. Profits are only logged when a vessel is sold. The ships are normally fixed on long-term time charters or bareboat charters.
This year, Jamlo has sold 4,400-gt vessel Carten Elke (built 1989) and the 12,800-dwt multipurpose vessel Wisconsin (built 2004).
