Odfjell Returns to Profit
Odfjell SE today reported preliminary full year and Q4 2016 results, showing improvement in financial performance in 2016 in spite of challenging markets. Efficiency programs continue to increase competitiveness, and the balance sheet is substantially strengthened.
For the full year, Odfjell reports net results of USD 100 million, compared with net results of USD -36 million in 2015, and improved full year EBITDA to USD 238 million, from USD 190 million in 2015. The Q4 results show stable underlying operational performance, but softer markets impacted the net result which ended at USD 43 million. including capital gains and impairments.
“Our markets remained challenging, but Odfjell continues to build both financial and operational strength. Based on our strengthened position we are now launching our new strategy – the “Odfjell Compass” – which will be leading the company into the future”, said Kristian Mørch, CEO of Odfjell SE (ODJAF).
Other 4Q highlights:
* Initiated fleet renewal programme for large stainless steel chemical tankers
* Odfjell Tankers Q4 EBITDA: USD 36 million, compared with USD 48 million in third quarter, on a softer spot market
* Stable Q4 results from Odfjell Terminals, however slightly reduced EBITDA due to increased maintenance and operating costs
* Sale of the Oman terminal in Q4 resulted in capital gain of USD 44 million
* Our Tank Terminal in Rotterdam continue to improve
* Successful completion of new unsecured bond issue of NOK 700 million in January 2017
In a longer perspective we believe the market is fairly balanced, but rates are expected to be under pressure in 2017 as the market absorbs new capacity. Odfjell expects the 1Q17 timecharter results to be in line with, or marginally better than 4Q16, and the 2017 Odfjell Terminals results to be improved on continued strengthened performance at our terminal in Rotterdam.