Torvald Klaveness reports pre-tax loss for 2016

Impairments on containership fleet hurt results at Norwegian shipowner and pool operator.

Torvald Klaveness has reported a full-year loss for 2016 of $58m, more than double the losses of $23m seen in the previous financial year.

However, the Norwegian shipowner made impairments of $59m on the value of its fleet of eight modern containerships.

The Lasse Kristoffersen-led company said full-year revenue was down almost 26% to $297m from the $400m seen in 2015.

“The markets where Torvald Klaveness operates continued to be challenging in 2016,” said chief executive Lasse Kristoffersen.

“Earnings for the combination carriers weakened in 2016, mainly due to a weaker tanker market, somewhat higher spot exposure and lower transported caustic volumes.

“Results were nevertheless satisfactory and Klaveness was able to expand its fleet from six to eight vessels by establishing new trades.

“The container market weakened further in 2016 resulting in an increase in idle days for the Klaveness container vessels, however rates above the general market were still achieved due to the vessels’ fuel efficiency.”

Kristoffersen said that despite continued weak shipping markets Torvald Klaveness maintained a high solidity and good liquidity in 2016.

“Due to a solid cash position after the sale of the five self-unloader vessels in January, we repaid both bond and bank debt and strengthened cash deposits during 2016,” he said.

“The balance sheet remains solid with a book equity including minority interest of $264m at year-end corresponding to an equity ratio of 47%.

“Klaveness also took measures to reduce operating and administration costs further in 2016 and is well positioned to withstand continued low markets.”