Odfjell Reports Weak Q4 2012 Chemical Tankship Market

Press Release
Thursday, February 14, 2013

Tankship & terminal storage owners/operators Odfjell also noted significant losses at their Rotterdam terminal in its Q4 2012 report.

Jan A. Hammer, President/CEO Odfjell SE comments on the financial report as follows:

The chemical tanker market improved seasonally towards the end of the year. Volumes shipped remained on par with the previous quarter. Earnings on a time-charter basis were up 7.8% compared to third quarter. Freight rates per tonne shipped increased by about 10%. The average price on bunkers purchased in the quarter remained high.

In fourth quarter, with the exception of Odfjell Terminals (Rotterdam) (OTR), the EBITDA for our tank terminals remained on par compared with previous quarter. In December we announced that we had signed of a Letter of Intent with Lindsay Goldberg LLC to expand the existing joint venture to essentially include all of our tank terminal business. The proposed transaction will significantly increase the capitalization of the tank terminal division and will enable us to jointly embark on an ambitious and accelerated growth strategy.

OTR has reached agreements in principle with the Unions and the Works Council with the objective of finalizing the negotiations regarding downsizing and reorganisation of the work force.

The re-commissioning project at OTR is slightly delayed relative to earlier plans. 717,000 cbm is approved for usage per end of January 2013. We now expect 1.2 million cbm to be available for commercial use by end of Q2 2013.

The supply/demand picture within the chemical tanker segment continues to move in our favour. However, favourable yard prices and modern fuel efficient designs may lure investors to contract new tonnage. The supply overhang, on the other hand, may be prolonged due to reversal of lost capacity through slow-steaming and low utilisation.

Our main concerns relate to challenging markets also in 2013, high fuel costs and potential setbacks in the global economy. On the tank terminal side we have witnessed higher activities and inquiries for storage. We expect improved earnings in our tank terminal division in the first quarter of 2013.

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter January 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Delia Succeeds Schmidt as Ohmsett Program Manager

MAR Incorporated has named John Delia the Program manager for Ohmsett – The National Oil Spill Response Research & Renewable Energy Test Facility, succeeding Bill Schmidt who retired in December 2015.

SBM Offshore: US Authorities Reopen Corruption Probe

SBM Offshore, the world's top oil production ship leasing company, said on Wednesday that U.S. authorities had re-opened an inquiry into bribery allegations involving the Dutch company.

The Next Generation of Hull Performance Management

Hull performance monitoring solutions can offer significant fuel savings potential, a fact that is prompting growing interest from the maritime industry. To spur

Finance

Funding Secured for Project to Deepen the Delaware River

Dennis Rochford, president of the Maritime Exchange for the Delaware River and Bay, announced that President Obama’s FY17 proposed budget includes $33 million for the Delaware River Deepening Project.

Top 10 Shipowning Nations by Value

VesselsValue has provided a list ranking the top shipowning nations by value, including the percentage change difference against 2015 figures. Although the

Port of Hamburg Reports Bulk Cargo Jump in 2015

The Port of Hamburg reports higher bulk cargo throughput and strong growth in rail and inland waterway seaport-hinterland traffic in 2015 – downturn in container handling.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Port Authority Salvage Ship Electronics Ship Repair
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1027 sec (10 req/sec)