Odfjell absorbs losses

(Aug 14 2009)

Parcel tanker and terminal specialist Odfjell reported a second quarter 2009 consolidated net result of $11 mill and a first six months’ net result of $3 mill.


EBITDA for 1H09 was $103 mill against $149 mill in 1H08. EBIT was $31 mill against $82 mill in the first six months of last year.


Operating and general administrative costs were lower this year compared with 2008, partly due to cost reductions and a stronger US dollar. The net financial expenses were $18 mill for 1H09, compared with $43 mill in 1H08.


In the parcel tanker sector, 1H09 EBITDA came in at $49 mill, compared with $101 mill in 1H08. However, 1H09 EBIT amounted to a loss of $9 mill, compared to again of $47 mill in 1H08.


Per day timecharter results declined by 6% in 1H09 and by the same amount from the first quarter of this year to the second.


The volume was only marginally lower during the second quarter of this year, while the coa business recovered to previous levels. Odfjell said that coas were crucial during the current market conditions and the company would be concentrating on increasing its coa coverage further.


The outlook for parcel tankers is uncertain, Odfjell said. The net supply of vessels will increase this year as newbuildings continue to be delivered, although contracting has stopped and many newbuildings are being delayed.


Activity remains good in certain sectors and volumes under coas are recovering. “We expect that the typical parcel trades where we have good coa coverage will continue to deliver acceptable results,” Odfjell said.


Coated vessels are more vulnerable as they depend heavily on CPP, vegoil and ethanol. The same applies to the smaller deepsea stainless steel vessels, where competition is described as extremely tough. Rising bunker prices are an additional concern, the company said.