HOEGH REPORTS SHARP FALL IN PROFIT FOR FIRST QUARTER

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.