Chemical tanker owner Utkilen has reported an improved annual profit on the back of a sharp increase in operating revenue.
The family-owned Norwegian company has reported operating revenue of €113m ($129m) for 2019, up from €100m in 2018. Pre-tax profit increased from €16.2m to €17.9m.
The improvement is primarily due to growth in the company fleet.
At the end of 2019, the company owned and operated 23 chemical tankers of between 6,000 dwt and 20,000 dwt.
During the year, Utkilen took delivery of three ships of 20,000 dwt and two 10,500-dwt vessels. Another two 10,500-dwt sisterships are set for delivery this year.
They are all designed to run on batteries and are ready to use LNG as fuel.
The larger new ships, which accounted for a majority of the company's revenue boost, were built at Fukuoka Shipbuilding in Japan for subsidiary Steam Shipping, in which Utkilen has a 90% stake.
The vessels reportedly cost $33m to $34m each.
The 10,500-dwt newbuilding series is being constructed at AVIC Dingheng Shipbuilding in China.
Those vessels cost the company $25m.
Ships in this class represented 18% of the total revenue at Utkilen, which is a sharp increase from 2018.
In another fleet renewal move, the company recently sold the 8,000-dwt Havstraum (built 1991) in an off-market deal.
Due to the impact of the coronavirus, Utkilen posted a weaker result in 2020. But in its annual report for 2019, the shipowner stressed that the company has a satisfactory financial position.
Ove Utkilen controls the Bergen-based company and sits on the Utkilen board. Chairman Bjorn Sjaastad has a 2% stake in Utkilen.
Siri-Anne Mjaatvedt was hired as company CEO in 2018, joining from compatriot shipowner Odfjell.
