Odfjell releases stable results

Nov 11 2016

Odfjell reported a good third quarter, despite the challenging markets.

An EBITDA of $60 mill and a net result of $16 mill for the third quarter of this year, was compared with $61 mill and $16 mill in 2Q16, respectively.

The downward trend in freight rates seen in 2Q16 continued through the third quarter. However contract nominations and efficient allocation of the fleet softened the impact of the weaker market, the company said.

Odfjell’s chemical tanker segment delivered an EBITDA of $48 mill and an EBIT of $25 mill - the same as reported for previous quarter. 

The company's shareholding in the tank terminal segment also continued to deliver stable result, as an EBITDA of $11.6 mill in 3Q16 was recorded, compared with $12.1 mill in the previous quarter.

The occupancy rate of commercially available capacity was 96%, compared to 97% in 2Q16.

"Our markets continue to be challenging, but we continue to see improvements in our competitiveness, which softens the impact on the Odfjell results. The sale of the Oman terminal at an attractive valuation shows some of the underlying value in our terminal business," said Kristian Mørch, Odfjell CEO.

In a note, Norne Securities said slower 4Q16 for chemical tankers was guided, but only minor changes will be made to its estimates and the positive view will stay. 


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