Odfjell SE third quarter results reflect stable underlying results from Odfjell Terminals when adjusting for the Rotterdam terminal, despite a decreased EBITDA of $32m from $37m.
Odfjell Terminals delivered an EBITDA of $3.9m in the third quarter versus $8.9m in previous quarter. The decrease was impacted by the fuel oil spill in the Rotterdam harbour, interrupting storage and distillation business due to the closure of the port.
The sale of the Rotterdam terminal also led to fewer days of income contribution for the terminal. The result was also impacted by higher G&A related to the restructuring of the Odfjell Terminals organisation. The company’s U.S. terminals showed a stable EBITDA of $4.4m compared to previous quarter. “The strong market demand and high activity continues in the U.S.,” the company said in a statement.
The total average occupancy rate of commercially available capacity dropped to 81%, from 86% last quarter. The total average available capacity decreased by 18,120 cbm to 2,517,000 cbm. Excluding Rotterdam, the total average occupancy rate of commercially available capacity was 94 percent, similar to last quarter.
“The chemical tanker market remained depressed during the quarter, but we continue to believe that 2018 is the turning point for the chemical tanker markets. Adjusting for the Rotterdam terminal, our terminal division delivered stable results. We have positioned ourselves well for the future, both within tankers and terminals, with one of the most energy efficient fleets in the world”, said Kristian Mørch, CEO of Odfjell SE.
Total planned capital expenditure (Odfjell SE share) is $26m excluding Rotterdam, of which $19m is maintenance capex and $7m is expansion. Odfjell’s share of Odfjell Terminals’ book value stood at $226m as of the third quarter. Odfjell’s share of net debt amounts to $34m.
Odfjell Terminals signed the final agreement for the sale of its 100 percent stake in Odfjell Terminals Rotterdam (OTR) to Koole Terminals B.V. The sale will result in a positive net liquidity effect of around $88m for Odfjell SE in the balance sheet for the fourth quarter. The acquisition by Odfjell for LG’s 12.5 percent shareholding in the Antwerp is expected to be concluded following LG’s sale of its share in the Houston terminal in 4Q18/1Q19.
For more information visit: www.odfjell.com
9th October 2018