Overall EBITDA was $32 mill, compared with $37 mill in 2Q18.
Odfjell Tankers reported an EBITDA of $27 mill, compared to $28 mill in the previous quarter. EBITDA for Odfjell Terminals was $4 mill, compared to $9 mill in second quarter.
The company also announced $16 mill of losses related to sale of the Rotterdam terminal, that included currency translation and tax losses in addition to transaction costs. The sale was concluded in September.
The net result was minus $31 mill, compared to minus $120 mill in 2Q18.
“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, Odfjell CEO.
In analysing the report, Norne Research said that it will make only slight changes to the estimates following the report, as the continuous soft market had already signalled stability and nothing was communicated to change its view.
EBITDA from Tanker segment came in lower, due to the fuel oil spill in Rotterdam and fewer days of income contribution from the terminal, due to its sale, however, taking Rotterdam out of the equation, results were also stable in Terminals.
Odfjell said it expected the chemical tanker market to remain challenging in 4Q18, but believed 2018 will be the turning point in the market. By comparison, Stolt-Nielsen only expected a improvement in 2H19.
Chemical tanker demand is expected to grow by 5% - 7% on average per year by 2020, compared to a vessel supply growth of 2% on average per year in the same period, supporting Odfjell’s positive expectations, Norne said.