Norwegian tanker owner DSD Shipping has reported a significant improvement in its annual result and has had a strong start to 2020 amid fleet renewal efforts.
The privately owned company said that last year it had a pre-tax profit of NOK 184m ($17.4m) against a NOK 69m loss in 2018.
The biggest contributor to the jump was the reversal of a substantial write down of its fleet in 2018.
Chief executive Oddvar Hausken said the whole company fleet is exposed to the spot market in three different pools.
But he added: “We are also following developments in the time-charter market.”
He said he expects the results for the first half of 2020 to be very good, although two months are left of the period. For the second part of the year, he said: “Things are much more uncertain, although maybe not as catastrophic as the most pessimistic scenarios.”
The strong start to 2020 came as the company is in the process of renewing its fleet.
At the end of 2019, DSD took delivery of the first of four 50,000-dwt newbuildings from Hyundai Vietnam Shipbuilding, while its three sisterships will arrive this year. The newbuildings had been part of a six-ship order, but DSD sold two to Transpetrol of Belgium, logging a profit of $2m per ship.
The new ships join the Stavanger-based company's fleet of four aframax tankers built between 2007 and 2009, and two intermediate tankers that are owned jointly with compatriot shipowner OH Meling.
In another fleet renewal move, in March last year DSD sold the 45,000-dwt tanker Stavanger Breeze (built 2004) to Wilmar Ship Holdings of Singapore, reportedly for $8.65m.
DSD is a subsidiary of diversified Det Stavangerske Dampskibsselskab. That privately-owned company, which was formed in 1855, is controlled by Yuhong Jin Hermansen, widow of late shipowner Folke Hermansen.
Det Stavangerske had a record result last year with a profit of just under NOK 1.01bn. Its book equity stood at NOK 2.42bn at the end of 2019.
