Solvang rides VLGC wave

Norwegian owner Solvang has boosted operating earnings as VLGC rates hit record levels in the first quarter.

It posted profit of NOK 15.7m ($2.65m) to 31 March, up from NOK 10.7m in 2013.

But lower financial gains reduced net profit to NOK 17.3m from NOK 24.1m.

The company said:  “The first quarter turned out to be a volatile and exciting quarter for the LPG vessels, delivering an all-time high rate in the VLGC segment, which in late April approached a doubling [$100,000 per day] of the previous record from 2008.”

It added the market tightened significantly due to higher volumes from the Middle East, port congestion in India that tied up more ships, and stronger US exports in line with the increasing volumes seen throughout 2013.

The company’s total revenue was up at NOK 32.4m from NOK 25.8m the year before.