Odfjell SE: Second quarter results in line with expectations - underlying operations slightly better than in first quarter
Chemical Tankers had an EBITDA of USD 24 million, compared with USD 17 million in the first quarter. Improved utilisation with only minor interruptions of trade. Time-charter results were up by 10%.
Odfjell's shareholding in the tank terminals business delivered an EBITDA of negative USD 10.0 million in the first half of the year, heavily impacted by a re-organisation charge at our terminal in Rotterdam in May of USD 11.8 million. The effect of the re-organisation is a significantly improved cost base for the terminal going forward. With the exception of the tank terminal in Rotterdam, the terminal results were overall in line with expectations. Adjusted for one-off charges at Odfjell Terminals (Rotterdam), Odfjell Terminals EBITDA was USD 1.8 USD million compared to USD 0 million in first quarter.
Our ongoing cost-cutting and efficiency review to provide for a more competitive cost structure indicates potential for significant improvements. Key decisions will be made in fourth quarter.
The US trade picture has brightened considerably in recent months as imports has increased to a record high as the economy improved and consumers unleashed pent-up demand. European economies are weakening as escalating tensions with Russia appears to impair Europe's fragile recovery. Oil markets are currently softer with prices sliding to the lowest levels for more than a year. The main forecasting agencies suggest reduced demand and a well-supplied market.
We expect third quarter of 2014 to be in line with second quarter for our chemical tankers. With regard to terminals, we expect continued stable results and gradually also improving results at our terminal in Rotterdam.
Please find the 2Q 2014 Report and 2Q 2014 Presentation attached.
For more information please contact:
Jan A. Hammer, President/CEO Odfjell SE
Tel.: + 47 55 27 00 00
E-mail: [email protected]
Terje Iversen, CFO Odfjell SE
Tel.: + 47 55 27 00 00
E-mail: [email protected]
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