IM Skaugen has reported a loss of $4.6m in the first quarter, as the company maneuvers from the spot LPG and petrochemical market to small-scale, long-term, small-scale LNG shipping.

The group's performance compares to a $9.6m loss in the preceding quarter and a $6.7m loss in the same period last year. Operating loss remained consistent year on year at $3.7m, despite revenues from gas transportation falling from $17.9m in Q1 2014 to $16.9m in 2015.

As demand is reduced for petrochemical gasses, the company is seeing increased interest in the transportation of LNG, for which six of the 15 vessels in the Norgas carrier pool are suitable.

IM Skaugen has invested over $15m in research and development of equipment and systems for ship-to-ship transfer of LNG, storage and regasification.

"The prospective contracts in LNG are more attractive compared to employment in the more spot focused LPG/petrochemical gas trade of the current Norgas business; both in terms of rates and contract duration," the compay stated in its earnings release.

"Our strategy is to target and develop niche markets for the Company where we see potential for growth and higher margins and with higher barriers to entry: niche markets where the company by use of know-how, technology and innovation, can be positioned as the cost and service leader."