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

People & Company News

Ship as Lifeboat Concept Disputed by ICV

A recent meeting at the National Transportation Safety Board in Washington, D.C. (attended by International Cruise Victims (ICV) Board representatives) discussed

McDermott Elect G.P. Luquette Board Chairman

Provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide, McDermott International, say that Gary P.

Ill-Considered Energy Policies Threaten US Navy: Report

The United States government has pursued energy policies based on “the mistaken belief in the unproven science that claims carbon dioxide (CO2) emissions from burning

Shipbuilding

Two Navy Contracts for GD Bath Iron Works

Included in the latest listing of contracts awarded by the US Department of Defense, Navy, are two contracts with General Dynamics Bath Iron Works, Bath, Maine.

Newport News Shipbuilding's Apprentice School to partner Old Dominion University

The Signing of a memorandum of understanding between the Apprentice School and Old Dominion University (ODU) will take place tomorrow (23rd April) at 3101 Washington Ave.

Viking Welding Delivers Fire/Rescue Boats

Fire Departments in South Carolina and Minnesota have recently accepted delivery of Response FR-28 and FR-31J boats built of welded aluminum by Viking Welding & Fabrication in Kensington, N.

Tanker Trends

ISS to Support Petrobras Expansion

Inchcape Shipping Services (ISS)  has had its port agency and tanker husbandry services contract significantly enlarged by Petrobras.   The Brazilian government-owned energy giant,

Thinking Outside the MR Tankship Rate Triangle

Although US refined products exports largely underpin medium-range (MR) product tanker demand in the Atlantic Basin, there is little evidence of similar stability

Oiltanking Partners Report Q1 Distribution Increase

Oiltanking Partners, L.P. announced that the board of directors of its general partner declared a cash distribution of $0.495 per unit, or $1.98 per unit on an annualized basis,

Finance

UK Subsidises 8 Renewable Energy Contracts

The British government on Wednesday awarded investment contracts under a new subsidy regime to eight renewable energy projects, including five offshore wind farms and three biomass plants.

Two Navy Contracts for GD Bath Iron Works

Included in the latest listing of contracts awarded by the US Department of Defense, Navy, are two contracts with General Dynamics Bath Iron Works, Bath, Maine.

NIS Q1 Net Profit Up 18 %

Serbian oil company NIS , majority owned by Gazprom Neft, reported an 18 percent rise in net profit in the first quarter of 2014 on higher sales and improved production efficiency.

News

GEIMS Maritime Training accorded highest grade from DGS

GEIMS Maritime Training accorded highest grade from DGS Great Eastern Institute of Maritime Studies (GEIMS) is now the first approved maritime training Institution

BP Gulf Spill Trial Set For January

The high-stakes penalty phase of BP's trial over its role in the 2010 U.S. Gulf of Mexico oil spill will start next January, court officials said on Tuesday,

Canada To Keep Keystone XL Issue Alive With White House

Far from giving up on the Keystone XL pipeline to the United States, Finance Minister Joe Oliver said on Tuesday Canadawould keep the issue alive with the Obama

 
 
Maritime Security Offshore Oil Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
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: 0.0427 sec (23 req/sec)