Odfjell SE : Continued weak results

The time-charter results are in line with last quarter. Chemical tankers EBITDA of USD 17 million, compared with USD 19 million in the fourth quarter of 2013. The tank terminal results remained stable except for our terminal in Rotterdam.

For our chemical tankers, first quarter continued on a slow and disappointing pace as congestion, delays and bad weather caused operational challenges, inefficiencies and increased cost. In general, rates came under pressure during the quarter as tonnage was abundant. Bunker prices were similar to the fourth quarter 2013, offering no relief. Going into the second quarter 2014 we note increased activity and less delays and interruptions.

Odfjell's shareholding in our tank terminals business delivered an EBITDA of negative USD 0.2 million in the first quarter. With the exception of Odfjell Terminals (Rotterdam) (OTR), terminal results were mainly in line with our expectations. The overall terminal group, excluding OTR reports a gross occupancy of 92% as at end of March. The process at OTR of re-organisation to improve the cost base to market level continues.

An improving US job market and increasing industry production signals that the pace of the US economic growth is poised to snap back. Growth is projected to reach 2.7% this year. The biggest risk to an optimistic growth forecast for the Euro zone is associated to continued or even worsening unrest in Ukraine. A stronger Euro is also hurting the competitiveness of the region's exporters. For China, the economic indicators so far this year have been disappointing and debt default repayment risk is rising significantly.

Even though the overall medium-term prospects remain favourable for long-term industrial operators, we have started  a review of all aspects of our business model, including reorganisation and alternative ownership models, in order to identify areas of improvements in terms of providing better economic results through a more competitive organisational cost structure.

We will now broadcast a video presentation in English at www.odfjell.com (Investor Centre/Reports and Presentations).

For more information please contact:

Jan A. Hammer, President/CEO Odfjell SE
Tel.: + 47 55 27 00 00
E-mail: [email protected]
or
Terje Iversen, CFO Odfjell SE
Tel.: + 47 55 27 00 00
E-mail: [email protected]