Odfjell remains in the red

Feb 12 2016

Odfjell has reported a significant improvement in the group’s underlying performance in 2015 with $100 mill in annual savings achieved.

However, the net result for 2015 was a negative $36 mill, which included the negative effect from bunker derivatives of $64 mill, compared with a negative $75 mill in 2014.

Full year EBITDA improved to $190 mill from $96 mill in 2014 and operating expenses were reduced by $53 mill, compared with 2014.

Project Felix (cost-cutting and efficiency programme) was successfully completed, ahead of target gaining the $100 mill plus in annual savings.

Chemical Tankers EBITDA in 4Q15 was $33 mill, compared with $46 mill in the third quarter. This figure included a negative effect from bunker derivatives of $20.5 mill.

The negative development was also partly explained by fewer sailing days in the quarter and a softening market for clean petroleum products and commodity chemicals towards the end of 4Q15.

The fuel efficiency initiatives continued to be implemented. The average fuel savings for converted ships was above 20%.

Odfjell's tank terminals business delivered an EBITDA of $11.4 mill in 4Q15, up from $9.9 mill in the previous quarter.

Despite a somewhat uncertain market outlook, Odfjell said that it expected 2016 results for chemical tankers to improve based on a more competitive cost structure, and expiry of loss-making bunker hedges.

Odfjell Terminals 2016 results are also forecast to improve on strong PID distillation activity and better storage results at Odfjell Terminals (Rotterdam) and stable results for the other terminals. 

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