Odfjell Records Steady Q3 Earnings

MarineLink.com
Thursday, November 14, 2013

EBITDA of $37 million is reflecting stable earnings both from chemical tankers and tank terminals in the third quarter.

For the chemical tankers business, activity over the summer and through the third quarter held steady and was in line with the second quarter on both contract nominations and spot activity.

In September Odfjell signed shipbuilding contracts with Nantong Sinopacific Offshore & Engineering Co., Ltd for the construction of four LPG/Ethylene carriers of 17,000 cbm. This newbuilding order is an important step in our strategy to grow and become a significant operator in the gas market.

Our shareholding in tank terminals business contributed an EBITDA of $7 million in third quarter, the same as in previous quarter. With the exception of Odfjell Terminals (Rotterdam) (OTR), terminal results were largely in line with expectations. OTR is working on a revised business plan, scheduled to be completed within year end, and has decided to possibly redevelop most of the older areas of the terminal. Current book value of OTR assets is $241 million.

As a possible consequence of the revised business plan, impairment of certain OTR assets, including customer relationships and goodwill totalling net $54 million, will be evaluated.

The U.S. economy and the U.S. dollar are finally looking up, which is good news for our business generally. The European economy is still lagging but is showing modest improvement. The big question is the strength of China's economy.

Excessive credit growth, rising local government debt and weaker export momentum may cap the recovery, from the last two quarters of slowdown.

Based on the above we expect a slow but steady increase in demand for our services. We expect the final quarter of 2013 to be similar to or slightly better for our chemical tankers than the third quarter. As to terminals, with the exception of Odfjell Terminals (Rotterdam), we expect continued stable results.

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

People & Company News

Exmar Optimistic About Gas Carrier Market into 2015

Belgian gas shipping group Exmar said on Thursday that the market for its very large and midsize gas carriers was at historically high levels in the third quarter

Rep. Cummings Receives Maritime Service Award

On Wednesday, October 29, Congressman Elijah E. Cummings (D-MD) delivered keynote remarks at APL Maritime’s Senior Management Conference, and received an award

LA Governor Jindal Appoints Bollinger's Barker

Louisiana Governor Bobby Jindal appointed James "Ray" Barker to the Louisiana Workforce Investment Council. Barker, of Raceland, is the Director of Human Resources at Bollinger Shipyards, Inc.

Shipbuilding

Keel Laid, Fabrication Started on 2 Navy Warships

This week, General Dynamics Bath Iron Works celebrated two milestone events for the Arleigh Burke-class program. On October 30, Bath Iron Works held a keel laying

AVEVA E3D Takes Center Stage

Customer case studies combine with advances in asset visualization and cloud technologies to showcase a new era in the creation and management of complex Digital Assets.

Braemar Hosts Insurance Experts

Braemar (incorporating The Salvage Association) welcomed an invited group of marine insurance professionals onto its specialist port and shipyard familiarization

Finance

Exmar Optimistic About Gas Carrier Market into 2015

Belgian gas shipping group Exmar said on Thursday that the market for its very large and midsize gas carriers was at historically high levels in the third quarter

Confidence High in UK Logistics Sector

The latest U.K. Logistics Confidence Index commissioned by Barclays and Moore Stephens reveals that confidence in the U.K. logistics sector remains high but more

Statoil Invests $1.5b in US Offshore Project

Statoil together with co-owners in the Stampede development in the Gulf of Mexicohas sanctioned the Stampede project in the U.S. Gulf of Mexico. Statoil said it will invest $1.

News

Easing US Oil Export Ban Unlikey to Raise Gasoline Prices

A government study on Thursday essentially supported the notion that easing the decades-old restriction on exporting U.S. crude was more likely to lower than raise

Keel Laid, Fabrication Started on 2 Navy Warships

This week, General Dynamics Bath Iron Works celebrated two milestone events for the Arleigh Burke-class program. On October 30, Bath Iron Works held a keel laying

Bulker Arrives to US on Her Maiden Voyage

The Port of Vancouver USA welcomed the Kypros Unity, commanded by Capt. Wilfredo F. Itable of Cyprus, on her maiden voyage Oct. 28. Capt. Itable and his 20-member

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Shipbuilding / Vessel Construction
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: 0.2031 sec (5 req/sec)