Odfjell reported a net result for the first quarter 2016 of $24 millions, with improved EBITDA of $69 million, compared to $45 million last quarter.
The company said it has seen a significant reduction in voyage expenses compared to previous quarters mainly due to expiry of bunker hedges.
Odfjell Terminals, meanwhile, continues to improve with first profitable quarter since 2013.
“We are pleased to see the increasing benefits from our cost cutting and efficiency program last year, which is now fundamentally changing the competitiveness of Odfjell,” said Kristian Mørch, CEO Odfjell SE.
For chemical tankers, Odfjell said the first quarter was a stronger quarter than the previous in terms of net earnings, with the majority of our vessel classes delivering improved performance. EBITDA in the first quarter was $56 million compared with $33 million in the fourth quarter 2015.
Odfjell's shareholding in the tank terminals business delivered an EBITDA of $11.9 million the first quarter, up from $11.4 millon in the previous quarter. Performance was driven in part by revenues from storage and PID distillation in Rotterdam and stable result for the other terminals. The occupancy rate of commercially available capacity for Odfjell Terminals was 98 percent.
Odfjell said it is now likely that it will cancel the four 17,000 cbm gas carriers, in which case the company will evaluate its options for remaining investments in gas.