The family of Norway's Otto Gregard Tidemand have seen their dry-bulk operations return to profitability after years of heavy losses.
Thanks to the surge in rates, Stove Shipping and Eastern Bulk have reported a combined pre-tax, pro forma profit of $12.7m on operating revenues of $131.6m.
About 88% of the revenue comes from the bulkers operated by Eastern Bulk.
In 2016, the two companies lodged separate reports. Shipowning unit Stove Shipping logged a pre-tax loss of $5.5m in 2016.
Handymax and supramax operator Eastern Bulk posted a pre-tax loss of $4.3m loss in the same year.
Stove Shipping is owned by sisters Caroline Figenschou Tidemand and Kristin Tidemand Eckhoff, who are daughters of Otto Tidemand.
Cutting costs
"We have made efforts to reduce costs and to adapt the organisation and the fleet to the current market,"
Eckhoff told Norwegian daily newspaper Finansavisen.
"And we are of course enjoying that the bulker market has improved sharply since the winter of 2016."
Early in 2017, the group struck a deal with Danske Bank to restructure its loans. Under the agreement, no instalments are required until the end of 2018.
At the end of 2016, the outstanding debt totalled $38.1m, and the bank held mortgages on the 55,000-dwt Stove Ocean (built 2013) and the 58,000-dwt Stove Caledonian (built 2010).
Otto Tidemand said: “We are certain we will come to an agreement with the bank on the payment of instalments.”
Stove Shipping has a fleet of six supramaxes that were built between 2006 and 2016. Several of them are joint-venture projects with Norwegian former retail king Stein Erik Hagen and his company Canica.
