J. Lauritzen Posts 1Q Loss amid Challenging Markets

Image Courtesy: J. Lauritzen

Danish shipping company J. Lauritzen widened its net loss in the first quarter of 2017 to USD 12.4 million from a net loss of USD 8.3 million posted in the same period last year.

In 1Q 2017, EBITDA before special items amounted to USD -7.4 million against USD -17.2 million recorded in the same period of 2016. The improvement was due to the strengthening of dry cargo markets compared to the sharp decline in 1Q 2016 and improved market conditions for smaller gas carriers, the company said.

“Despite market improvements in 1Q, dry cargo markets continue to be challenging”, Mads P. Zacho, J. Lauritzen’s CEO, commented, adding that the company is pleased “that the market for smaller gas carriers saw some improvements in the first quarter of 2017.”

In the company’s bulker segment, Lauritzen Bulkers, an average number of operated vessels reached 80 in the three-month period ended March 31, 2017, compared to 103 in 1Q 2016. In addition, EBITDA before special items for 1Q was USD -11.5 million against USD -19.9 million in 1Q 2016.

Furthermore, in the gas carrier segment, Lauritzen Kosan, an average number of operated vessels reached 30 in 1Q 2017 compared to 36 in 1Q last year. EBITDA before special items totaled USD 6.4 million compared to USD 5 million in 1Q 2016.

During the quarter, J. Lauritzen implemented organizational and cost adjustments in an effort to improve its “competitive position”.

Earlier this year, World Maritime News reported that the company agreed upon main terms for a new financing package from banks and its owner, Lauritzen Fonden. The main terms of the financing included capital injection from Lauritzen Fonden, modification of the repayment schedule and amendments to existing loan facilities’ covenants.

In April, a new agreement was obtained with the company’s core lenders and owner. Under the new deal, J. Lauritzen secured a fresh boost as part of the financing package which now amounts to up to USD 80 million.

According to the company, the new agreement continues to include a four-year amortization reduction and maturity extension to 2021 by core bank creditors. The revised agreement, which is subject to satisfactory final documentation, is expected to strengthen J.Lauritzen’s balance sheet and reduce its financing cost.

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2017 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

CWC World LNG & Gas Series: Americas Summit

Now in its 15th year, the CWC World LNG & Gas Series: Americas Summit is the longest running LNG event in the Americas region.

Bringing together the key players in the LNG & gas value chain in both the Americas region and globally, this is the perfect place to make new contacts, do deals and get essential updates on the market.

This year we return to Houston, TX once again on 20-23 June 2017 – the heart of the energy industry, making it easier than ever to access they key players in your business.

More info

read more >

Nor-Shipping 2017

Nor-Shipping is the leading maritime event week. Their top-quality exhibition, high-level conferences and prime networking opportunities…

read more >

2ND ANNUAL PORTS AND TERMINALS INSURANCE SEMINAR

DETAILED GUIDANCE ON HOW THE INSURANCE MARKET IS CHANGING, HOW RISKS ARE ASSESSED AND WHAT…

read more >

2ND ANNUAL ADVANCED CHARTERING MASTERCLASS

The Advanced Chartering Masterclass will focus on the particularly difficult issues in charterparty agreements and our experts will help you find solutions…

read more >