Highlights 2006
The result totalled USD 125.6m in 2006 compared to USD 210.4m in 2005. This included profits of USD 43.7m from the sale of vessels, down from USD 52.7m in 2005. Results were better than expected and very satisfactory.
Return on invested capital was 25.8% compared to 60.5% in 2005 and return on equity was 19.3% compared to 39.8% in 2005.
Lauritzen Bulkers was the main contributor to JL’s 2006 net earnings, although Lauritzen Kosan, Lauritzen Reefers and Lauritzen Tankers all made positive contributions, cf. Figure 1.
Tax amounted to USD 10.8m in 2006, compared to USD 21.2m in 2005.
Lauritzen Kosan sold its fleet of gas carriers below 3,000 m3, and strengthened its focus on larger sized vessels by entering new strategic alliances on semi-refrigerated tonnage, including ethylene carriers.
Lauritzen Tankers continued its fleet build up through additional newbuilding contracts and acquisition of second-hand vessels.
Land-based activities relating to the reefer business, including the Euroamerica port terminal in Campana, Argentina, were disposed of in the course of 2006 and early 2007 at a small profit.
JL’s newbuilding programme was expanded during 2006 with additional bulk carriers, gas carriers and product tankers and at the end of the year, JL had the largest ever number of vessels on order.
At the end of 2006, JL’s combined order book of own and time-chartered vessels comprised 36 vessels, including 18 bulk carriers, six gas carriers, and 12 product tankers. The order book for own vessels represents a total value of approximately USD 820m. Revolving credit facilities have been established with banks to meet financial needs, if necessary. In addition to the already committed newbuilding investments JL’s medium term investment capacity amounts to about USD 1bn.
Based on present contracts, JL partners will contribute a further four bulk carriers, six gas carriers and three product tanker newbuildings to the JL managed fleet; this in addition to JL’s own newbuilding programme.
New offices were opened in Shanghai, China and Cambridge, UK in 2006.
In 2006, JL alone or together with associates controlled an average fleet of 184 vessels, which was similar to 2005, cf. Figure 2.
Investments in fleet expansion amounted to USD 364.8m compared to USD 155.1m in 2005. Divestments amounted to USD 121.1m compared to USD 213.3m in 2005.
Total invested capital amounted to USD 626.9m at year-end 2006, up from USD 357.4m at year-end 2005. Average invested capital was USD 492.2m, cf. Figure 3.
After year-end, Lauritzen Bulkers became part owner in two second-hand Handysize bulk carriers. Lauritzen Reefers sold a 378,000 ft3 reefer vessel. This left Lauritzen Reefers’ fleet with only bare-boat and time-chartered tonnage. Finally, a 37,200 dwt product tanker was acquired and a 40,000 dwt product tanker newbuilding was sold.
Figure 1: Result for the year, USDm
Figure 2: Average no. of vessels
Figure 3: Invested capital average, USDm
