The shipping activities of Norway's JB Ugland Group sank into a loss last year.
But the Grimstad-based group is boosting its fleet with another car carrier from United European Car Carriers (UECC).
Shipping subsidary JM Ugland & Co's pre-tax result sank to NOK 10m ($1.17m) last year from a NOK 25m in 2016, according to the company's annual report. The weaker result came partly from lower bareboat rates for two of the company’s ships.
But the report also shows that shipping is a tiny part of the activities of JB Ugland, contributing revenue of just NOK 43m last year.
Meanwhile, the company has purchased the Tsuneishi Shipbuilding-constructed 2,000-ceu Autostar (built 2000) for an undisclosed price. The deal involves a bareboat charter to back to UECC.
The deal is similar to that of the five other car carriers in the Ugland fleet.
Parent JB Ugland Holding's saw its pre-tax profit increase sharply to NOK 246m from NOK 79m.
The outfit reported revenue of NOK 850m last year, up from NOK 687m in 2016.
The company is led by chairman and owner Johan Benad Ugland and his son, managing director Johan Martin Ugland.
The younger Ugland could not be reached for comment.
Johan Benad, 65, is a third generation shipowner. He is the eldest son of Andreas KL Ugland, whose father Johan Milmar established Uglands Rederi in 1930.
