HOEGH’S NET PROFIT DOWN IN 2002

HOEGH’S NET PROFIT DOWN IN 2002    Leif Hoegh & Co., the diversified Norwegian shipping group, saw its net profit fall to $62 million in 2002, from $83 million in the previous year, despite improved results in the fourth quarter.
   Operating profit for 2002 was $88 million, down from $102 million in the previous year. Freight revenues decreased to $667 million, from $680 million over the same period.
   Hoegh said that the decrease in operating profit was due to the non-recurrence of a $15 million sales gain that was recorded in 2001.
   The results for Hoegh’s roll-on/roll-off and liquefied natural gas shipping activities improved in 2002, while results for its open hatch and reefer vessels decreased.
   For the fourth quarter, the Hoegh group earned a net profit of $26 million, as compared to a profit of $9 million in the fourth quarter of 2001. Operating profit for the latest quarter rose to $27 million, from $20 million. Freight revenues were $178 million, up from $172 million in the fourth quarter of 2001.
   Commenting on prospects for 2003, Hoegh said that market conditions for the company’s main businesses “are not expected to change much from 2002,” as they are characterized by stability and long-term contracts. However, the Norwegian group warned that bunker costs may remain high because of the risk of war, and that the economic situation remains uncertain.