"Disappointing Fourth Quarter" for Odfjell

MarineLink.com
Thursday, February 13, 2014
Aratu (Photo: Odfjell)

Odfjell SE reported that fourth quarter shows EBITDA of $18 million, compared with $17 million in the fourth quarter of 2012. Time-charter results are down 5% compared with last quarter due to lower volume shipped. Impairment of net $76 million recognized related to Odfjell Terminals (Rotterdam) (OTR).

Activities slowed somewhat during the fourth quarter, Odfjell said, and combined with significant delays, scheduling constraints and ensuing cancellations, the result for the quarter trailed the previous quarter. The average rate per metric ton shipped was higher than the previous quarter; however, volume shipped was lower due to delays and scheduled off-hires. Bunker prices proved somewhat softer.

Our shareholding in tank terminals contributed an EBITDA of negative $0.6 million in the fourth quarter. With the exception of Odfjell Terminals (Rotterdam) (OTR), terminal results were mainly in line with our expectations. OTR however, has applied for a new environmental operating license, which has made it necessary to suspend further re-commissioning of old tank capacity. In the meantime, OTR is continuing to develop its long-term business plan. In line with the preliminary plan, and expected reduced available capacity and throughput level at the terminal in the coming years, an impairment of net $76 million was recognized in the fourth quarter in respect of certain assets, including customer relations and goodwill.

The U.S. posted its strongest GDP growth for the last three years on the back of a substantial acceleration in private sector demand led by stronger consumer spending and a significant pickup in exports. The European economy has continued its gradual improvement, with Germany and the U.K. leading the way. China's economic growth is decelerating, with growth of still healthy 7.7% in the fourth quarter, but somewhat weakening exports and investments. The fundamentals within the LPG/Ethylene segment continue to improve, and we expect stronger earnings in 2014 for our gas carriers. The U.S. shale gas and oil resurgence is breathing new life into the US chemical industry. Based thereon, we expect a slow but steady increase in demand for Odfjell's services.

Odfjell said it expects first quarter of 2014 to be slightly better than the fourth quarter in 2013 for our company's chemical tankers. With regard to terminals, with the exception of OTR, we expect continued stable results.

odfjell.com
 

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Shell CEO: US Should Export Oil, Embrace Global Markets

The head of energy company Royal Dutch Shell said on Tuesday that U.S. policymakers should lift the crude oil export ban because allowing the shipments would make global energy system more stable.

SUNY Maritime Takes the Ice Bucket Challenge

Taking full advantage of one of the summer’s hottest days, twelve administrators and staff at the State University of New York (SUNY) Maritime College today took the Ice Bucket Challenge,

Fraunhofer Researchers Improve Underwater Images

Videos and images of the submarine world are important for the maritime industry. Researchers from Fraunhofer IGD will show how underwater images can be improved

Ports

Algeria in Talks to Export Crude to Venezuela

Algeria is in talks to export crude oil to fellow OPEC member Venezuela, Algerian Energy Minister Youcef Yousfi said on Tuesday, confirming a Reuters report. Last week,

New Shipping Agency Enters the Market

Newly formed shipping agency Wave Shipping aims to bring change to current industry practice with its differentiated value proposition Founded by Lars Rosenkrands,

Tankship-specific Version of FindaportCD Released

Harbour & terminal information providers, Shipping Guides Ltd, says its latest tanker-specific  addition enables customers to access the most comprehensive port

Finance

Norwegian to Buy Prestige Cruises in $3b Deal

Norwegian Cruise Line Holdings Ltd (NCLH.O) said it would buy Prestige Cruises International Inc from its owner Apollo Global Management LLC (APO.N) in a $3 billion

Master Fined After Wind Farm Collision

The master of a wind farm support vessel has today been made to pay £3,000 in fines and costs after pleading guilty to breaches of maritime collision regulations.

Statoil, DNV GL Drive Subsea Factory Interface Standardization

Statoil has entered into an agreement with DNV GL to establish an industrial cooperation to introduce an international industry standard for subsea process technology.

News

Shell CEO: US Should Export Oil, Embrace Global Markets

The head of energy company Royal Dutch Shell said on Tuesday that U.S. policymakers should lift the crude oil export ban because allowing the shipments would make global energy system more stable.

Fuel-saving Modifications for Containerships’ Engines

Mitsui Engineering & Shipbuilding Co., Ltd., and 100% owned subsidiary MES Technoservice Co., Ltd., have received an order from a Taiwan shipowner for fuel-efficiency

Tropical Storm Dolly Heads toward Mexico

NOAA's National Hurricane Center issued a tropical storm warning in effect from Cabo Rojo to Barra El Mezquital, Mexico as Tropical Storm Dolly approaches the country’s eastern coast.

 
 
Maritime Contracts Navigation Pipelines Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2262 sec (4 req/sec)