Svenska Orient Line Announces Good Results

Wednesday, August 15, 2001
Increased international trade and higher demands on more efficient transportation are two factors that benefit shipping and a niche-oriented shipping company such as Swedish Orient Line (SOL).

SOL's core business is liner shipping between the Nordic countries and the Mediterranean. Since October 1, 2000, this service has been operated via a joint venture, SolNiver Lines, with SOL holding 60% of the shares. This service is based on four RoRo vessels, which are chartered from SOL and supplemented by chartered tonnage when the need arises. In addition to being the general agent for SolNiver Lines in Scandinavia, the Baltic States and the U.K., SOL is also the agent for Pol-Levant Shipping Lines, which also operates liner traffic between the Nordic countries and the Mediterranean. SolNiver Lines has a traffic collaboration agreement with Pol-Levant Shipping Lines.

SOL also operates a container service between the Nordic countries and southern Africa and carries out liner agencies operations for traffic to and from West Africa as well as international project assignments.

With 90 years of experience and close cooperation with its customers, SOL has professional know-how in shipping, which also represents a potential for continued development.

The consolidated result continued to improve during the second quarter with a profit of MSEK 7 (-14). This improvement was mainly accounted for by the liner service between the Nordic countries and the Mediterranean and is a consequence of the restructuring of the business operations.

The profit for the first half of the year was thus MSEK 6, which is a MSEK 35 improvement over the result for the same period in 2000, excluding surplus funds received from Alecta.

Cargo volumes in the liner service to and from the Mediterranean continued to increase during the second quarter. Together with higher freight rates and a higher SEK/USD exchange rate, this means that shipping sales, in comparable terms, were 35% higher than during the equivalent period, last year. However, only a portion of this increase can be seen in the consolidated income statement since SolNiver Lines is consolidated proportionally and the revenues for the RoRo vessels are partly in the form of time-charter hire.

Swedish Orient Line's sale and charter-back of the four RoRo vessels, which took place at the end of last year, have resulted in lower overall costs for the vessels. Another consequence of this is that all the vessel costs are now shown as an operating cost, which means that consolidated depreciation has decreased sharply at the same time as a positive net financial result has arisen due to the fact that all the ship loans were repaid during the last quarter of 2000.

The container service between the Nordic countries and South Africa and the international project assignments also recorded sharply increased cargo volumes together with substantially higher profits.

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Bulk Carrier Trends

Asia Dry Bulk-Capesize Rates Mixed on Uncertainty

Capesize rates slide after hitting 5-month high. Rates for capesize bulk carriers eased this week after hitting their highest since December, and could come

HSH Bank to Split Off Bad Shipping Loans

German lender HSH Nordbank could split off a "bad bank" for non-performing shipping loans as part of a plan to create a sustainable business model, according to a person familiar with the matter.

CSD, Cosco JV to Buy Vale's Bulk Carriers

China Shipping Development (CSD) and Cosco have established a joint venture (JV), China Ore Shipping Pte., in Singapore to purchase four 400,000 dwt ore carriers from Vale and operate them.

Environmental

US Funding for Air Emissions/Alternative Energy Projects

The U.S. Maritime Administration (MARAD) announced that up to $1.3 million in Federal funding is now available through cooperative agreements for projects supporting

Torqeedo Introduces New Deep Blue Inboard

Torqeedo now offers a shaft drive version of its 40 and 80 horsepower Deep Blue motor. An electric drive designed for marine use from the ground up, the Deep Blue inboard shares the safety,

SoCal Beach Cleanup Could Take Months

The U.S. Coast Guard captain overseeing cleanup of oil spilled from a pipeline rupture that closed two California state beaches and fouled offshore waters near

 
 
Maritime Standards Naval Architecture Navigation Pipelines Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1249 sec (8 req/sec)