HOEGH REPORTS SHARP FALL IN PROFIT FOR FIRST QUARTER
Net profit at Leif Hoegh fell to $1 million in the first quarter, from $19 million in the same quarter in 2002, as the group was hit by higher bunker and other costs.
Operating profit was $11 million, down from $23 million in the first quarter of 2002. Freight revenues increased to $172 million from $162 million over the same period.
Hoegh, the parent company of roll-on/roll-off operator HUAL, said the profit decrease was due to higher bunker costs and higher operating and administrative expenses. These were affected by the weaker U.S. dollar, more ro/ro vessels dry-docked and the loss of the ship “HUAL Europe.”
Operating profit at HUAL declined to $10 million in the first quarter, from $17 million at the same time last year. Volumes decreased in January.
The underlying market conditions for the group’s ro/ro business are stable, Hoegh said.
Hoegh expects to report a “somewhat higher operating result” for the next quarters, but warned the general economic situation, the development of bunker prices and the war in Iraq represent uncertainties.
HOEGH REPORTS SHARP FALL IN PROFIT FOR FIRST QUARTER
