Odfjell SE today reported results for 3Q 2017. The results reflect a weaker spot market for chemical tankers and the market for terminals was under pressure from falling forward prices of oil/products. Odfjell reports EBITDA of USD 37 mill compared with USD 41 mill in the previous quarter.
Highlights of 3Q 2017:
- Odfjell chemical freight index (ODFIX) down 4.1% compared with previous quarter
- Chemical Tankers EBITDA was USD 28 mill compared to USD 31 mill previous quarter. The key deviation relates to a weaker spot market
- The direct financial impact for Odfjell Tankers due to hurricane Harvey in the US Gulf was limited in 3Q, but utilisation of the fleet dropped
- Odfjell Terminals EBITDA 9 mill, compared to USD 10 mill in the previous quarter
- Odfjell continues to pursue an exit from Gas, where the two existing LPG carriers are assets held for sale
- Odfjell SE announced the sale of Odfjell Terminals' 50% ownership share in the Singapore terminal. The expected book gain is USD 135 mill, with net proceeds of around USD 150 mill. The sale is likely to close in 4Q
"3Q was a challenging quarter for our tanker and terminal divisions. Our balance sheet remains robust and our competitiveness continues to increase, so we are positioned to benefit once our markets recover. The sale of our Singapore terminal in line with our strategy will result in a significant gain"
Kristian Mørch, CEO, Odfjell SE
We expect 4Q 2017 results to be in line with 3Q 2017.
Published November 9, 2017