Solvang reported a strong gain in second-quarter profit thanks to the sale of a stake in one of its ship owning companies.
The Edvin Endresen-led gas carrier owner reported earnings from shipping activities, which includes both its ship owning and ship management businesses, of NOK 52m ($6.25), a 46% increase over last year. Earnings per share were up 64% of NOK 2.3m.
Income from ship owning companies was NOK 48.9m compared to NOK 29m a year earlier. Without the one-time gain from the stake sale, income would have been NOK 28m.
Solvang reported share of revenue on a time-charter equivalent basis of NOK 101.2m, up 18% for the year.
Solvang said results for the quarter were positively affected by the delivery of three large gas carriers (LGCs) and one mid-size gas carrier (MGC), which added NOK 9.5m to earnings. It said better utilisation of its ethylene carriers also added NOK 10.5m to the quarter.
Those improvements were offset by declines in the very large gas carrier (VLGC) market due to several of its ships being on index-linked time charters. The decline in the Baltic Exchange’s VLGC freight index resulted in a negative effect of NOK 21m for the quarter.
