Norway's Solvang has reported an eight-fold spike in pre-tax profits as the company benefited from a strong LPG freight market environment.
The Steensland-family controlled gas carrier owner reported pre-tax profit of $46.9m for 2020, according to the just released annual report.
That's up from $5.3m in 2019.
Solvang reported operating revenue of $274m, up from $214.9m in 2019.
Chief executive Edvin Endresen told the Norwegian financial daily newspaper Finansavisen that the LPG market is expected too improve further later this year and in 2022. He added, however, that the ammonia market appears "somewhat more challenging" amid the impact of the Covid-19 situation.
Solvang's board has proposed a dividend of more than $186m for 2020.
Solvang has a fleet of 27 ships between 12,000 cbm and 84,000 cbm in capacity. The company's eight VLGCs are all on period contracts, some of which are long-term deals.
In the summer of 2020, he predicted that that it would be a stronger year for the company.
Solvang has been through an extensive renewal programme. In 2019, it took delivery of five newbuildings costing $270m in total.
Four of them were 21,000-cbm ethylene carriers from Hyundai Mipo Dockyard. The company does not plan to order additional tonnage now.
Solvang's parent, the Steensland Group, is headed by Michael Steensland Brun. He, his sister Melanie Tone Steensland Gotteberg and their mother Menne Steensland own the key companies in the group, which was taken private in 2017.
Solvang was founded by the late Inge Steensland, Brun's grandfather, in 1960.
Endresen had a total remuneration of NOK 4m ($120,000) last year, up from NOK 3.7m in 2019, according to the rpeort.
