Norway-based shipping company Saga Tankers recorded a net income of NOK 41.4 million (USD 5.3 million) in the first half of this year, down from a net income of NOK 116.1 million (USD 15 million) posted in the same period a year earlier.
EBITDA for the first half dropped to NOK 42.4 million from NOK 116.9 million.
During the second quarter of this year, the company reported a net income of NOK 5.2 million, against NOK 105.7 million seen in the same quarter of 2016. In 2Q 2017, EBITDA also decreased to NOK 5.6 million from NOK 106 million posted in the three-month period of 2016.
By the end of the second quarter, Saga said it had a cash balance of NOK 471 million and no long term debt, except the real estate financing related to the holding in Vallhall.
The company currently holds investments classified as financial assets available for sale with a fair value of NOK 318.6 million. The negative development in available for sale reserves of NOK 43 million,
classified as other comprehensive income, is due to the declining share price of SD Standard Drilling Plc, Pareto Bank ASA and Vistin Pharma ASA, Saga said.
In 2Q 2017, Saga has increased its investment in SD Standard Drilling Plc from 14.9% to 15.8%.
“The group has a solid investment portfolio and a strong balance sheet, enabling the company to continue to pursue attractive investment opportunities within the framework of industries it operates. The group expects the current market volatility to continue going forward, providing opportunities to create value through investments in assets, equity or debt,” Saga said in its outlook.