Sale of Rotterdam Terminal Affects Odfjell’s Earnings
Norwegian shipping and tank terminal company Odfjell SE suffered a net loss of USD 120 million in the second quarter of this year, compared to a loss of USD 4.7 million seen in the same period of 2017.
EBITDA stood at USD 37.2 million in Q2 2018, against an EBITDA of USD 41.4 million posted in the corresponding period a year earlier.
As explained, the results reflect the impact of the sale of the Rotterdam terminal, while underlying results from Odfjell Terminals improved compared to the previous quarter.
Earlier this year, Odfjell Terminals entered into an agreement with the Netherlands-based Koole Terminals to sell its 100% ownership of Odfjell Terminals Rotterdam (ODR). The transaction is expected to be completed in the second half of this year.
The move followed the announcement by American private equity firm Lindsay Goldberg (LG) on the sale of its 49 percent shareholding in Odfjell Terminals B.V. (OTBV) and Odfjell’s decision on an outright sale of OTBV subsidiaries OTR and Odfjell Terminals Maritiem (OTM).
Odfjell has agreed to acquire LG’s indirect shareholding in the Antwerp terminal for USD 27 million 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 j/v terminal in Antwerp will ensure a foothold in Europe, with Antwerp being the most important port for chemicals in the EU,” Kristian Mørch, CEO of Odfjell SE, commented.
Odfjell further said that the chemical tanker market softened during the quarter, but the company’s TCE performance remained stable due to strong contract nominations.
“Chemical tanker spot rates weakened further during the quarter, but we continued to outperform the market indexes due to strong contract coverage,” Mørch added.
During Q2 2018, Odfjell Tankers took delivery of three vessels while two time chartered vessels were redelivered.
One of the company’s vessels, Bow Jubail, leaked over 200 tons of fuel oil in the Port of Rotterdam following the collision in June. Odfjell said it worked together with Dutch authorities and its insurance company to mitigate consequences of the spill.
When speaking about the future prospects, the company said it expects the challenging market to continue in the coming quarter. Time charter rates in Q3 are also expected to be in line with Q2 2017.
“We continue to believe that we will see a gradual improvement for chemical tankers towards the end of the year,” Odfjell said.