Tank terminal transactions will further strengthen Odfjell SE but the company experienced another challenging quarter in the chemical tanker markets.
Odfjell SE has reported its results for the second quarter 2018. The 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.
Odfjell SE reports EBITDA of $37m compared with $34m in the previous quarter.
Highlights for the second quarter of 2018:
- EBITDA of $28m from Odfjell Tankers compared to $27m in first quarter.
- EBITDA of $9m from Odfjell Terminals compared to $6m in first quarter.
- $58m of impairments, and tax losses of $43m related to the sale of the Rotterdam terminal. The transaction is expected to have a positive cash contribution of about $100m.
- Net results of $120m compared to $12m in last quarter.
Subsequent events:
- Odfjell Terminals entered into an agreement with Koole Terminals B.V. of the Netherlands (Koole) to sell its 100% ownership of Odfjell Terminals Rotterdam (OTR).
- Odfjell has agreed to acquire Lindsay Goldberg’s (LG’s) indirect shareholding in the Antwerp terminal for $27m subject to certain conditions related to LG’s exit.
“The sale of our Rotterdam terminal will further strengthen Odfjell SE as a company. The planned increase in our shareholding in our joint venture 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”, said Kristian Mørch, CEO of Odfjell SE.
28th August 2018
