Sale of Rotterdam Terminal Impacts Odfjell
Tank terminal transactions will further strengthen Odfjell SE but the company experienced another challenging quarter in the chemical tanker markets.
The second quarter 2018 results reflect the impact of the sale of the Rotterdam terminal, while underlying results from Odfjell Terminals improved compared to the previous quarter. The chemical tanker market remains challenging, but Odfjell’s TCE performance remains stable.
“The sale of our Rotterdam terminal will further strengthen Odfjell SE as a company. The planned increase in our shareholding in our j/v terminal in Antwerp will ensure a foothold in Europe, with Antwerp being the most important port for chemicals in the EU. Chemical tanker spot rates weakened further during the quarter, but we continued to outperform the market indexes due to strong contract coverage,” stated Kristian Mørch, CEO of Odfjell SE.
Odfjell Terminals had entered into an agreement with Koole Terminals B.V. of the Netherlands (Koole) to sell its 100% ownership of Odfjell Terminals Rotterdam (OTR).
In a stock exchange announcement three months ago, Odfjell said that Lindsay Goldberg (LG) is considering a sale of its 49% shareholding in Odfjell Terminals B.V. (OTBV), and the announcement that Odfjell would consider tagging along on an outright sale of OTBV subsidiaries Odfjell Terminals Rotterdam (OTR) and Odfjell Terminals Maritiem (OTM).
"Odfjell is pleased to announce that OTBV intends to enter into an agreement with Koole Terminals B.V. of the Netherlands (Koole) to sell its 100% ownership of OTR and OTM for a total cash consideration of USD 155 million net of estimated transaction costs," it said.
Further, Koole will compensate OTBV for all permitted equity injections made in 2018 until closing. The intended transaction would at closing reduce Odfjell Terminals net debt with around USD 35 million.