Wednesday, 25 February 2009
Eitzen Chemical ASA reports EBITDA of USD 21.6 million for the 4th quarter of 2008, compared to USD 22.7 million in the same quarter last year. The 4th quarter rates for the Eitzen Chemical fleet below 30,000 dwt were down by 5.8 % compared to the level in the previous quarter, while the vessels above 30,000 dwt reported average rate decreases of 9.4 % compared to the 3rd quarter level.The market value of the Eitzen Chemical fleet decreased with approximately 20 % during the second half of 2008. To reflect the lower valuation, an impairment of USD 156.2 million is charged in the 4th quarter. At year end the Company's net asset value was around USD 600 million or NOK 24 per share.As of 31 December 2008 the Company did not meet the requirement of a covenant in its bank loan agreements. Eitzen Chemical has requested its banks to amend the loan agreements allowing a higher net debt to EBITDA ratio through 2010. Two of the bank syndicates have approved the request, and the Company is awaiting reply from the third syndicate shortly.Eitzen Chemical's remaining newbuilding program now consists of ten vessels. The company has agreed with one of the yards, where it has a remaining newbuilding program of five vessels to pay 95% of the contract price on delivery of the vessels.Terje Askvig, CEO said: "We are in advanced discussions on new lease and bank financing of USD 70 million and we target a further USD 40-50 million in financing. The new financing plan and the delayed payment of a significant portion of the newbuilding program will make the company better positioned to meet the challenging market conditions that lie ahead."Eitzen Chemical is an industrial carrier of petrochemical and related cargos with a fleet of 98 vessels. 69 vessels are owned and leased, and a further 17 vessels are operated for partners. The Company has 10 newbuildings on order.Source: Eitzen Chemical ASA
Please refer to link below on the financials http://hugin.info/137124/R/1292699/292522.pdf
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