The net result for 2Q15 was $7 mill, compared with a loss of $32 mill in the previous quarter.
During 2Q15, the company said that it saw a steady improvement in the chemical tanker market with improved earnings both in the deepsea segment, as well as in the remaining regional operations.
As a result, chemical tanker segment EBITDA for 2Q15 was $42 mill, compared with $26 mill in the previous quarter.
The Group also saw continued improved results from Odfjell Terminals with an EBITDA of $18 million for the first half 2015, compared with a negative EBIDTA of $10 mill in 1H14.
This year’s terminals performance was driven in part by the high demand for spot and mid-term storage due to the oil market’s contango.
The cost-cutting and efficiency programme progressed as planned with all cost reduction initiatives on schedule, Odfjell said.
An impairment charge of $10 mill was recorded against the sale of vessels.
The company said that it expected the third quarter 2015 to be similar to 2Q15 for the chemical tankers on a further reduced cost base, but with a slightly softer market.
With regard to the terminals business, stable to improved earnings on capacity expansions and continued positive development at Odfjell Terminals (Rotterdam) was forecast.
Odfjell said that it was in the process of securing commitments for all the scheduled vessel re-financing, which should be completed shortly. For example, re-structured financial leases on three vessels should yield $15 mill in new liquidity, while in total, the 2015 re-financing programme should secure $65 mill.
As for the Group’s ‘Project Felix’- a cost reduction and efficiency improvement exercise - the target is still to improve the net result on an annual basis with $100 mill saved when fully implemented.
As part of the programme, three short sea vessels were sold to Stolt Nielsen in 2Q15, which resulted in the exiting from unprofitable trades.
The focus on the next two quarters will be on profitability improvement initiatives and energy efficiency projects, the company said.
As for the market going forward, US household consumption is expected to support economic growth in the second half of this year. However, the pace of the Euro area’s recovery remains moderate and gradual and there will be continued uncertainty about China.
Increased benefits will continue to be seen from lower bunker prices.
Odfjell said that it expected the third quarter results to be similar to 2Q15 for the chemical tanker segment and stable to increased earnings at Odfjell Terminals, due to capacity expansions and continued positive development at Odfjell Terminals (Rotterdam).