Odfjell Reports Best Quarter Since 2008
In what it is calling its best quarterly performance since third quarter 2008, the Odfjell Group for the second quarter of 2015 reported net results of $7 million.
The group, which transports and stores bulk liquid chemicals, acids, edible oils and other special products, said it saw steady general improvement in the chemical tanker market with improved earnings in the deep-sea segment as well as in the remaining regional operations. The Odfjell chemical freight index rose 5 percent compared with the previous quarter.
The group reported continued improved results from its Odfjell Terminals segment, with an EBITDA of $18 million first half 2015. Performance was driven in part by the high demand for spot and mid-term storage due to contango in the oil market, the company said. Odfjell’s terminal in Tianjin was not directly affected by the port explosions earlier this month, and the group expects operations to commence in October.
Odfjell noted its cost-cutting and efficiency program, which targets a total of $100 million in savings, is progressing as planned. The restructuring plan saw the loss of 85 positions at its Bergen office, as well as the divestment of its last three remaining tankers trading in the “unprofitable” European short sea market in June 2015.
Odfjell said it expects third quarter 2015 to be similar to the second quarter for our chemical tankers on a further reduced cost base, but with a slightly softer market. With regard to its terminals, Odfjell expects stable to improved earnings on capacity expansions and continued positive development at Odfjell Terminals (Rotterdam).