The operating profit was NOK 264 million (NOK 491 million in 1998).

Transcription

1 REPORT PER 3RD QUARTER 1999 RESULTS sales gains and depreciation for the first three quarters for Leif Höegh & Co. (LHC) Consolidated was NOK 438 million (NOK 639 million in 1998). Höegh Lines' result declined by NOK 117 million from This was partly due to the markets (about NOK 80 million) and partly due to the effect of the sale of the four liner vessels beginning of the year combined with charter back (about NOK 37 million). Offsetting items as a result of the sale are lower depreciation and interest costs. Also the car and reefer sectors produced lower results compared to The operating profit was NOK 264 million (NOK 491 million in 1998). Profit from associated companies was minus NOK 269 million, which includes a book loss from the sale of the Bona shares in the amount of NOK 274 million, LHC's share of Bona's net profit up to the sale and a share of Gorthon Line's net profit. Net financial items amounted to minus NOK 67 million (minus NOK 182 million in 1998). The USD weakened slightly against the NOK in the third quarter. However, the USD has so far this year strengthened from 7.60 to 7.77 causing a foreign exchange loss of NOK 25 million against a loss of NOK 27 million in Interest expenses on mortgage debt in the equivalent amount of NOK million was NOK 154 million. Financial income increased from NOK 2 million in 1998 to NOK 112 million in Unrealised gain on the Teekay shares, not included in the accounts, fell during the quarter from NOK 51 million to NOK 10 million. Profit after financial items was minus NOK 72 million (NOK 347 million in 1998). The third quarter operating profit before sales gains and depreciation was NOK 135 million (NOK 188 million in 1998) and the operating profit was NOK 72 million (NOK 135 million in 1998). Net financial items amounted to NOK 1 million (minus NOK 27 million in 1998) and net profit was NOK 73 million (NOK 109 million in 1998). LIQUIDITY AND FINANCING Liquidity in the form of bank deposits and marketable securities was unchanged from the beginning of the year and amounts to NOK million, of which the liquidity in Unicool Ltd was NOK 152 million. LHC owned per a combination of Gorthon A- and B-shares representing 26.8% of the share capital and 47.9% of the votes.

2 USD 13.5 million was drawn under a USD 27 million facility to finance the second of two car carrier newbuildings with a capacity of 800 car equivalent units. The vessel was delivered from Shin Kurushima Dockyard Co. Ltd. in September. Both vessels are chartered to Euro Marine Carriers BV for 15 years with purchase options from year five and will be used in inter-european trade. ACTIVITIES HUAL AS The trend from the first half of the year with declining operating profit compared to last year continued in the third quarter. Volumes outbound both from the USA and Europe continued to decline, which was only partly due to seasonal factors like factory holidays and the introduction of new models. Continued low economic activity in South America affected negatively cargo volumes to that area. Volumes from the Far East to Europe and North America were relatively stable with, however, an increasing share of high and heavy rolling stock and secondhand cars. Unicool Ltd The market for reefer vessels continued to be weak, both relative to the first half year and to last year. The market in general was characterized by particularly low spot rates in July (10-15 c/cuft spot) due to reduced shipments of bananas to the Mediterranean and Russia. More vessels in lay-up led to substantial improvements in August/September with spot rates at c/cuft, which was higher than seen for many years for these months. Unicool does in general perform better than the spot market. Höegh Lines As previously mentioned the result cannot be compared to that of last year due to the sale of the four D-vessels to Egon Oldendorff ohg. The vessels are chartered back for two years at rates above today's earnings. The market situation for the line is otherwise unchanged with low cargo volumes outbound from North America to Southeast Asia and high capacity utilisation inbound. The situation for the open hatch/contract service was also largely unchanged. Exports from South America were high, while import volumes were low, partly due to weak local currencies which led to poor vessel capacity utilisation. One is still waiting for the exports of forest products from USA/Canada's west coast to pick up. One positive element was an increase of return cargo from Japan of i.a. containers. Gas NORMAN LADY was returned from A.P. Møller in September and entered immediately a year charterparty to Enagas S.A. The vessel is being employed in the transportation of LNG

3 from Trinidad to Spain and loaded its first cargo on 2nd October. HÖEGH GANDRIA operated without interruption under its charterparty to Pertamina. Dry Bulk The capesize vessels LAUDERDALE and JEDFOREST operated under their long term contracts to a company within the Shougang Group in Hong Kong. SHAREHOLDER RELATIONS The share price was almost unchanged from NOK 89 beginning of the year to NOK 88 by the end of the third quarter after a dividend payment of NOK 4 per share. The shipping index at the Oslo Stock Exchange (including off-shore) increased during the same period by 37%. Cashflow per share was NOK (NOK in 1998) and earnings per share was minus NOK 1.20 (NOK in 1998). PROSPECTS FOR THE YEAR For the full year the operating profit is expected to be in excess of NOK 300 million. As a result of the NOK 274 million loss from the sale of the Bona shares and negative net financial items, a zero-result for the full year is expected.

4 LEIF HÖEGH & CO. CONSOLIDATED STATEMENT OF INCOME (NOK million) TOTAL Freight revenues, net Voyage expenses (452)(1 265) (360)(1 119)(1 483) Charterhire expenses (210) (604) (215) (667) (869) Operating and general exp. (151) (489) (163) (474) (605) ordinary depreciation and sales gain Gain on sale of vessel Ordinary depreciation (63) (187) (53) (157) (213) Operating profit Profit assoc. companies 2 (269) Interest income Exchange gain/(loss) (realised/unrealised) 24 (25) 51 (27) (79) Interest expenses (55) (154) (57) (157) (193) Other financial items (31) (29) (37) Net financial items 1 (67) (27) (182) (265) Profit before extraordinary items 75 (72) Extraordinary items Profit before tax 75 (72) Tax (2) 35 (4) (20) (32) CONSOLIDATED RESULT 73 (37) Minority interests NET PROFIT 73 (37) Earnings per share (NOK) 2.40 (1.20)

5 LEIF HÖEGH & CO. CONSOLIDATED BALANCE SHEET (NOK million) Goodwill Vessels Newbuilding contracts Other long term receivables and fixed assets Other current assets Bank deposits and marketable securities TOTAL ASSETS Shareholders' equity Deferred tax Mortgage debt/lease obligations Other long term debt Other current liabilities TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY KEY FIGURES Cashflow per share

6 Results Quarter - NOK Million NOK Mill (200) Year sales gain and depreciation Profit before tax Cashflow per share quarter 1999 NOK Year Result per share quarter 1999 NOK Year

7 CONSOLIDATED OPERATING PROFIT QUARTER 1999: HUAL Freight revenues Voyage expenses (193) (163) (575) (514) Income on T/C-basis Charterhire expenses (87) (112) (300) (346) Operating expenses (44) (34) (129) (93) sales gain and deprec Gain on sale of vessels Ordinary depreciation (27) (16) (79) (44) Operating profit Unicool Freight revenues Voyage expenses (83) (64) (208) (207) Income on T/C-basis Charterhire expenses (59) (85) (174) (259) Operating expenses (27) (26) (83) (79) sales gain and deprec. (15) Gain on sale of vessels Ordinary depreciation (14) (15) (42) (45) Operating profit (29) (12) (12) 54 Höegh Lines Freight revenues Voyage expenses (169) (128) (471) (381) Income on T/C-basis Charterhire expenses (48) 0 (99) 0 Operating expenses (46) (70) (168) (209) sales gain and deprec Gain on sale of vessels Ordinary depreciation (7) (12) (25) (36) Operating profit 5 38 (1) 94

8 Gas Freight revenues Voyage expenses (1) 0 (2) 0 Income on T/C-basis Charterhire expenses Operating expenses (14) (9) (42) (27) sales gain and deprec Gain on sale of vessels Ordinary depreciation (7) (3) (18) (10) Operating profit Dry Bulk Freight revenues Voyage expenses (5) (4) (11) (16) Income on T/C-basis Charterhire expenses (15) (19) (31) (63) Operating expenses (9) (9) (28) (26) sales gain and deprec Gain on sale of vessels Ordinary depreciation (6) (7) (20) (20) Operating profit Adm./Other Freight revenues 8 (1) 11 3 Voyage expenses (2) (1) 1 (1) Income on T/C-basis 6 (1) 12 3 Charterhire expenses (1) Operating expenses (11) (13) (39) (38) sales gain and deprec. (6) (15) (27) (36) Gain on sale of vessels Ordinary depreciation (1) (1) (2) (3) Operating profit (6) (15) (28) (38)