Bergesen Forecasts Higher Operating Profits

Norwegian shipping group Bergesen d.y. posted a return to pre-tax profits for the second quarter on Thursday and forecast higher operating profits for the full year, but warned an economic slowdown could hit the second half.

"The board expects the group to generate a smaller operating profit in the second half than in the first half but to report a substantially higher operating profit for the year as a whole than last year," it said in a statement.

The board said an anticipated slowdown in the global economy would affect second-half results compared with the first half.

Bergesen shares were trading on the Olso bourse 1.2 percent down from Wednesday at 166 Norwegian crowns ($18.77). The total share index of Oslo bourse was off 0.2 percent.

With two main business areas in gas and tanker operations, Bergesen saw its pre-tax profits for the three months to June 30 leap to $63.9 million compared with a loss of $1.1 million in the same period last year.

Bergesen's operating profits for the period nearly doubled to $72.7 million versus $37.7 million. The increase in profits, which was almost in line with market expectations, was helped by capital gains of $19.2 million from vessel sales and higher earnings in its gas fleet versus the previous year, it said in a statement.

Seven analysts pointed to an average forecast of $66 million in profits before taxes and operating profits of $73.7 million.

The company's poor second-quarter results last year were a result of write-offs related to the sale of shares owned in Norwegian construction and engineering firm Kvaerner.

Looking ahead at its fleet prospects, the company projected its very large gas carrier division to see a drop of about one percent in total liquefied petroleum gas shipping volumes this year, while shipping volumes were expected to grow next year.

It said its very large crude carrier unit was "expected to rally during the second half of the year, albeit not as strongly as previously anticipated".