Press Release - Annual Report 2003
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· The net result was USD 76.2 mill.
compared to USD (32.4) mill. in 2002.
The 2002 result included a write-
down of USD 15.5 mill.
· Return on equity was 39% against
(23)% in 2002. Return on invested
capital was 16.4% compared to (8.8)%
in 2002. |
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· The pre-tax result is primarily related to Lauritzen Bulkers’ fleet strategy and the significant
increases in dry cargo bulk rates.
· The reefer business also contributed positively to the result. The year of 2003 became a
turning point for rates, supporting higher vessels values and enabling JL to make an
attractive sale of three minor non-core reefer vessels.
· In another difficult year for gas transportation, Lauritzen Kosan improved earnings
significantly, although still making a negative contribution to net results. With its change in
flag policy, Lauritzen Kosan has adopted a more competitive cost structure.
· Finally, the net result was positively influenced by a revaluation of deferred tax based on
the positive prospects for JL’s future earnings capacity.
Accounting policies have been changed to reflect the recent change in the Danish Financial Statements Acts, which now allow companies to present their accounts in their functional currency. The USD is the functional currency of JL and therefore the accounts are presented in USD as opposed to previous years when they were presented in DKK.
Late in 2003, JL decided to re-enter the product tanker business, adding another open market to JL’s business portfolio which presently comprises two niche businesses: gas and reefer, and the more open dry cargo bulk market.
During 2003 JL invested USD 74 million in fleet expansion in the gas and bulk businesses.
Further fleet expansion is expected in the years to come. At present, two second-hand Handysize bulk carriers of 26,500 dwt were delivered in the first quarter of 2004. Another two second-hand Handysize vessels will be delivered in the second quarter of 2004, and a total of three modern Handysize newbuildings will be delivered in 2005, 2006 and 2007, respectively.
The strategy for developing the LauritzenCool Logistics concept attracted NYK as a new partner for LauritzenCool. As of 1 January 2004, NYK and LauritzenCool implemented a tonnage sharing agreement and became 50/50 co-owners of LauritzenCool Logistics.
In 2003, JL saw improved results due to the Company’s strategies. These also strengthened its competitiveness which, supported by positive forecasts for the world economy, makes the outlook for 2004 very positive, and significantly better than 2003.
At year-end 2003, JL had a total staff of 997. Together with associates, JL operates globally a total fleet of some 220 owned and chartered vessels.
If you wish to access the entire Annual Report for 2003 please visit our website:
www.j-lauritzen.com.
For further information, please contact Torben Janholt, president & CEO,
or Birgit Aagaard-Svendsen, exec. vice president, CFO,
on +45 3396 8400.
18 March 2004
