Net Loss for Odfjell Despite Shiping and Terminal Improvements
Odfjell published their first quarter 2013 results, reporting EBITDA of $27 million which they said reflects a slightly better chemical tanker market and higher terminal earnings. Time charter results up 8% compared to last quarter.
Odfjell said the chemical tanker market improved slightly the first quarter of 2013, but remains at loss-making levels. Steady CoA nominations combined with increased spot activities enabled Odfjell to employ ships more efficiently. The bunker prices were marginally higher than in the previous quarter.
In the first quarter, Odfjell’s terminals delivered improved EBITDA compared to the previous quarter. The recommissioning project at Odfjell Terminals (Rotterdam) is running slightly behind schedule, primarily due to a shortage of engineering capacity. Final agreements have been entered into with Lindsay Goldberg post quarter to expand existing partnership to include substantially all tank terminal assets.
The supply/demand balance for Odfjell chemical tankers continues to develop, as there is virtually no ordering of advanced parcel tankers. However, high bunker cost and increased congestions and delays in port are serious concerns, both negatively impacting results and performance.
Full highlights can be viewed here, http://hugin.info/156/R/1699711/560822.pdf while the full first quarter 2013 report and presentation can be viewed here. http://hugin.info/156/R/1699711/560807.pdf