3Q 2014: Improving, but not yet sustainable
(Thomson Reuters ONE) -
The chemical tankers EBITDA is USD 26 million, compared with USD 24 million in
second quarter. The activity in the chemical tanker markets in third quarter was
quite similar that of the previous period. Time-charter results were down by
3%. Towards the end of the quarter the CPP market improved, which we expect will
positively affect also the chemical tanker sector. Lower oil prices have started
to reduce our bunker costs, but the downward trend in prices for oil products
also seems to hamper trade and the activity in general.
Odfjell's shareholding in the tank terminals business delivered an EBITDA of USD
4 million in the third quarter. With the exception of the tank terminals in
Rotterdam and Charleston, the terminal results were positive and in line with
previous quarter.
The cost cutting and efficiency review was announced in May and fully mobilised
as from July. Since then, the process has been organized through work streams
focusing on operating expenses, G&A, bunkers and trade optimization. During the
next two months all identified cost reductions will be subject to risk
assessment and detailed planning. Implementation will take place as from January
2015. However, we will without delay continue implementing immediate cost saving
and efficiency initiatives, related to reduced bunker consumption, trade
optimization and selected cost items. The immediate initiatives are expected to
bring an annualised bottom line effect in excess of USD 50 million when fully
implemented.
We expect fourth quarter of 2014 to improve from the third quarter for our
chemical tankers on a slightly stronger market, contract renewals, lower bunker
costs and a reduced cost base. With regard to terminals, we expect improved
results at Odfjell Terminals (Rotterdam) due to increased utilisation and a
lower cost base. For the remainder of the terminals we expect a slight increase
in earnings due to increase capacity.
Please find attached 3Q14 report and presentation.
For more information please contact:
Jan A. Hammer, President/CEO Odfjell SE
Tel.: + 47 55 27 00 00 / E-mail: jan.hammer(at)odfjell.com
Terje Iversen, CFO Odfjell SE
Tel.: + 47 55 27 00 00 / E-mail: terje.iversen(at)odfjell.com
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
3Q report 2014:
http://hugin.info/156/R/1870914/658077.pdf
3Q presentation 2014:
http://hugin.info/156/R/1870914/658078.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Odfjell SE via GlobeNewswire
[HUG#1870914]
Unternehmensinformation / Kurzprofil:
Datum: 13.11.2014 - 08:00 Uhr
Sprache: Deutsch
News-ID 352206
Anzahl Zeichen: 3303
contact information:
Town:
Bergen
Kategorie:
Business News
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