In reporting its annual results for 2017, the Grieg Group indicated that an increased loss at Grieg Star, was only partly offset by improved results within its seafood and investment activity arms.
According to its annual report, Grieg Star recorded a loss of NOK253 million (USD32.38 million) in 2017.
This is an increase on the loss of NOK64 million (USD8.19 million) in 2016. The company's annual report noted, however, that the 2017 figures are not comparable to the previous year's accounts because "Grieg Star's annual accounts have been restated for the entire 2017, in order to reflect the actual situation going forward, where Grieg Star's freight income is made up of an equivalent to net time charter hire received on its open hatch and dry bulk fleet."
HLPFI readers will recall that on May 2, 2017, Grieg Star and Gearbulk's joint venture, G2 Ocean, began operations, as we reported here. http://www.heavyliftpfi.com/news/g2-ocean-to-go-live.html
All of Grieg Star's ships are now part of the G2 Ocean Pool, which the company says is the world's largest in the open hatch segment.
Grieg says that this amalgamation has brought immediate cost benefits, while ship operations have been further streamlined. Both entities have shown a better performance compared with what could have been feared in a difficult market.
It adds that with a large part of the revenues related to long-term contracts, the recovery in freight rates in 2017 is not immediately reflected in the results for G2 Ocean and Grieg Star. This will first become apparent as the contracts are renewed in the coming years.
"Although many of our business areas are still being tested by challenging markets, tough competition and economic difficulties, we are continuously developing in an innovative way, making us better prepared for the future," the company said.