LPG carrier owner Solvang helped Steensland Group companies record the second-best combined annual profit in the Norwegian outfit's history.
The group made a pre-tax profit of almost NOK 1bn (about $100m) last year, according to the annual report for 2019, which has just been made publicly available.
That compares to a profit of NOK 202m in 2018 and the group record, NOK 1.06bn in 2016.
The Steensland companies reported book equity of close to NOK 7bn at the end of last year.
Although its real estate arms contributed most to the profits, Steensland also got a boost from Solvang.
Steensland subsidiaries Audley, Clipper and Straen own 68% of Solvang, which logged a $5.3m pre-tax profit, against a $11.1m loss the previous year. Its book equity stood at $49m at the end of 2019.
Solvang had operating revenue of $215m last year.
It completed its newbuilding programme during the year, taking delivery of four 21,000-cbm LPG ships from Hyundai Mipo Dockyard that reportedly cost $49.8m each.
Two of the ships have been locked into time charters, with the others operating in the spot market.
Solvang also took delivery of a VLGC from Hyundai Heavy Industries last year.
The company has a fleet of 27 ships with an average age of nine years, ranging from 12,800-cbm vessels to VLGCs.
The shipowner has installed scrubbers on most of them.
Solvang operates its fleet in a mix of contracts and in the spot market. Seven ships are on charters for more than one year. According to the annual report, the three biggest customers are Equinor, Petredec and Kolmar Group, which each accounted for more than 10% of Solvang’s revenue.
Chief executive Edvin Endresen had total remuneration of NOK 3.7m last year, up from NOK 3.6m.
Solvang was Oslo-listed until 2018, when the Steensland family took it private.
The shipowner is chaired by Michael Steensland Brun, who also heads the family-owned Steensland Group after his grandfather Inge Steensland died at 86 in 2010.
Solvang has a mixed fleet of LPG and ethylene ships. The board said last year's results reflected an improved LPG market, somewhat offset by a fairly muted ethylene market.
It is not proposing dividends because of uncertainties caused by Covid-19 and the collapse in the oil price.|
