Highlights 2005
2005 proved to be the most profitable year in the history of the company. JL’s share of the result was USD 208.8m compared to USD 199.2m in 2004. Included in the result was a profit of USD 52.7m from sale of vessels, compared to USD 22.2m in 2004.
Return on invested capital was 60.5% compared to 68.6% in 2004 and return on equity was 39.8% compared to 58.4% in 2004.
With a result before tax of USD 165.9m (USD 214.5m in 2004), Lauritzen Bulkers again had a significant influence on JL’s 2005 result. However, Lauritzen Kosan, Lauritzen Reefers and Lauritzen Tankers all improved results and thus also contributed to the positive result, cf. Figure 1.
Figure 1: Results for the year
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Tax amounted to USD (21.2)m in 2005 compared to USD (39.9)m in 2004.
In 2005, 50% of LauritzenCool AB was sold to NYK Reefers and the company was renamed NYKLauritzenCool AB. The new joint company subsequently acquired NYK Reefers’ trading activities and NYK Reefers’ 50% shareholding in LauritzenCool Logistics AB, thus consolidating all operational reefer activities of JL and NYK Reefers in NYKLauritzenCool with effect from 1 January, 2005.
During 2005, JL together with partners and associates controlled an average fleet of about 190 vessels compared to 239 vessels in 2004, cf. Figure 2. The decline was due to JL’s withdrawal from the partnership with Eastwind Maritime and Armada Reefers in the reefer segment, as a consequence of the sale of 50% of LauritzenCool.
Figure 2: Average number of vessels
During 2005, JL invested USD 155.1m in fleet expansion compared to USD 146.7m in 2004. Divestments amounted to USD 213.3m compared to USD 66.6m in 2004.
Total invested capital amounted to USD 357.4m at year-end 2005 down from USD 408.4m at year-end 2004.
Average invested capital was USD 382.9m, cf. Figure 3.
Figure 3: Invested capital (average)
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Additional fleet expansion is planned in 2006 and onwards. Early 2006, JL’s combined order book of own and time chartered vessels comprised 24 vessels, including six gas carriers, eight bulk carriers and ten pro-duct tankers, of which two were concluded after year-end 2005. The order book for own vessels represents a total value of approximately USD 393.8m.
On the basis of present contracts, JL partners will add a further four bulk carrier newbuildings and three product tanker newbuildings to the JL managed fleet in addition to JL’s own newbuilding programme.
After year-end, Lauritzen Bulkers acquired a 39,000 dwt second-hand Handysize bulk carrier and sold one Handymax bulk carrier. Lauritzen Reefers sold a modern reefer vessel, and Lauritzen Tankers took delivery of the first of two long-term time chartered 53,000 dwt product tankers.