Bergesen Group Reports First Quarter Results

The Bergesen group generated a first quarter operating profit of $10.7 million in 2003, down from $25.6 million last year, including a net loss on the sale of vessels of $0.6 million compared to a gain of $10.4 million last year. Freight income on a T/C basis totaled $122.8 million, compared with $114.5 million in 2002. Despite a strong tanker market, weak results in the other segments caused the total operating profit to fall. Operating expenses totaled $82.6 million, compared to $71.9 million in 2002. The USD appreciated from NOK 6.97 to NOK 7.29 over the quarter. The first-quarter average USD/NOK exchange rate was 7.06, compared with 8.91 in 2002. The drop in the average USD exchange rate contributed significantly to the increase in operating expenses as a large proportion of these expenses are incurred in NOK. The accounts show net financial income of $0.6 million after net interest expenses of $6 million and net foreign exchange gains of $9.6 million. Profit before tax came to $11.3 million, down from $30.8 million last year. Profit after tax $10.2 million, compared to $30.5 million last year.