The cost-cutting programme’s implementation by the end of 3Q15 was lagging at 72%, but in line with the new target of 73%. However, long term ambitious goals to improve net result by $100 mill per annum by next year remains.
Revenues were $241 mill, compared to $267 mill for 3Q14. EBITDA was $62 mill out of which, $17 mill related to the negative effects from bunker derivatives. Net profit was positive for the second quarter in a row at $7 mill and better than expected adjusting for bunker derivatives.
Odfjell forecast 4Q15 to be weaker for the chemical tanker segment, due to a slightly softer market. The terminal operations are expected to stay in line with the 3Q15. Furthermore, falling bunker prices are reducing costs, although hedged contracts from 2014 are offsetting this effect. However, the last of these contracts will mature in December, thus fuel costs can be expected to fall in 2016.
It was announced in the 2Q15 presentation that Odfjell expected 77% of cost cutting programme to be implemented by the end of September. However, the implementation was lagging by the end of 3Q15 and reached 72%. Therefore, the company adjusted its cost cutting programme targets down to 73% for the quarter. Although the targets were reduced for the short term, a long term ambitious goal to complete project ‘Felix’ by the end of 2016 remains, the company said.