Odfjell’s CEO has revealed that the third quarter of 2017 has been a ‘challenge’ for the company’s terminals and tanker divisions with the firm reporting results of $37m EBITDA compared to $41m in the previous quarter.
Highlights of the quarter include Odfjell chemical freight index (ODFIX) down 4.1% compared with previous quarter; chemical tankers EBITDA was at $28m compared to $31m previous quarter and Odfjell Terminals EBITDA stood at $9m compared to $10m in the previous quarter.
The direct financial impact of Hurricane Harvey on Odfjell Tankers has been limited to 3Q, but use of the fleet dropped. The company also plans to continue its drive to exit the gas industry and its two existing LPG carriers are for sale.
During the quarter the company announced the sale of Odfjell Terminals’ 50% ownership in a Singapore terminal. The expected gain is $135m, with net proceeds of around $150m. The sale is likely to close in 4Q.
Company CEO, Kristian Mørch said: “3Q was a challenging quarter for our tanker and terminal divisions. Our balance sheet remains robust and our competitiveness continues to increase, so we are positioned to benefit once our markets recover. The sale of our Singapore terminal is in line with our strategy and will result in a significant gain.”
For more information visit www.Odfjell.com
13th November 2017