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Odfjell declares disappointing fourth quarter
Fourth quarter shows EBITDA of USD 18 million, compared with USD 17 million in the fourth quarter of 2012. Time-charter results are down 5% compared with last quarter due to lower volume shipped. Impairment of net USD 76 million recognised related to Odfjell Terminals (Rotterdam) (OTR).
Activities slowed somewhat during the fourth quarter, and combined with significant delays, scheduling constraints and ensuing cancellations, the result for the quarter trailed the previous quarter. The average rate per tonne shipped was higher than the previous quarter; however, volume shipped was lower due to delays and scheduled off-hires. Bunker prices proved somewhat softer.
Our shareholding in tank terminals contributed an EBITDA of negative USD 0.6 million in the fourth quarter. With the exception of Odfjell Terminals (Rotterdam) (OTR), terminal results were mainly in line with our expectations. OTR however, has applied for a new environmental operating licence, which has made it necessary to suspend further re-commissioning of old tank capacity. In the meantime, OTR is continuing to develop its long-term business plan. In line with the preliminary plan, and expected reduced available capacity and throughput level at the terminal in the coming years, an impairment of net USD 76 million was recognised in the fourth quarter in respect of certain assets, including customer relations and goodwill.
The US posted its strongest GDP growth for the last three years on the back of a substantial acceleration in private sector demand led by stronger consumer spending and a significant pickup in exports. The European economy has continued its gradual improvement, with Germany and the UK leading the way. China’s economic growth is decelerating, with growth of still healthy 7.7% in the fourth quarter, but somewhat weakening exports and investments. The fundamentals within the LPG/Ethylene segment continue to improve, and we expect stronger earnings in 2014 for our gas carriers. The US shale gas and oil resurgence is breathing new life into the US chemical industry. Based thereon, we expect a slow but steady increase in demand for Odfjell’s services.
We expect first quarter of 2014 to be slightly better than the fourth quarter in 2013 for our company’s chemical tankers. With regard to terminals, with the exception of OTR, we expect continued stable results.
Source: Odfjell
Activities slowed somewhat during the fourth quarter, and combined with significant delays, scheduling constraints and ensuing cancellations, the result for the quarter trailed the previous quarter. The average rate per tonne shipped was higher than the previous quarter; however, volume shipped was lower due to delays and scheduled off-hires. Bunker prices proved somewhat softer.
Our shareholding in tank terminals contributed an EBITDA of negative USD 0.6 million in the fourth quarter. With the exception of Odfjell Terminals (Rotterdam) (OTR), terminal results were mainly in line with our expectations. OTR however, has applied for a new environmental operating licence, which has made it necessary to suspend further re-commissioning of old tank capacity. In the meantime, OTR is continuing to develop its long-term business plan. In line with the preliminary plan, and expected reduced available capacity and throughput level at the terminal in the coming years, an impairment of net USD 76 million was recognised in the fourth quarter in respect of certain assets, including customer relations and goodwill.
The US posted its strongest GDP growth for the last three years on the back of a substantial acceleration in private sector demand led by stronger consumer spending and a significant pickup in exports. The European economy has continued its gradual improvement, with Germany and the UK leading the way. China’s economic growth is decelerating, with growth of still healthy 7.7% in the fourth quarter, but somewhat weakening exports and investments. The fundamentals within the LPG/Ethylene segment continue to improve, and we expect stronger earnings in 2014 for our gas carriers. The US shale gas and oil resurgence is breathing new life into the US chemical industry. Based thereon, we expect a slow but steady increase in demand for Odfjell’s services.
We expect first quarter of 2014 to be slightly better than the fourth quarter in 2013 for our company’s chemical tankers. With regard to terminals, with the exception of OTR, we expect continued stable results.
Source: Odfjell
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