Eitzen Chemical Losses Grow

Norwegian tanker owner Eitzen Chemical has posted a bigger loss for 2011, but sees a slight improvement in the first quarter of this year.

The Oslo-listed company said the net deficit was $154m last year, up from$113.8m in 2010.

Revenue climbed to $426.03m from$374.16m, but costs rose in line with this.

It performed an impairment test at year-end relating to its fleet and booked a $62.5m charge as a result.

The owner is still evaluating alternatives to ensure "adequate longer term financial strength and liquidity" ahead of a debt moratorium expiring in December.

It said that in the short term it expects a continued challenging chemical tanker market, but the first quarter of 2012 is expected to be moderately above the previous quarters.

The closure of its Team Tankers and City Class pools for vessels controlled by third parties should be completed during the first half of 2012 and is expected to improve cash flow.

The total book value of the company’s vessels was $995.1m as at 31 December, down from $1.08bn in the third quarter, while interest-bearing debt including finance lease obligations was $973.3m, down from $1bn in the previous three months.

Eitzen Chemical has 53 vessels, of which 49 are owned or on financial lease and four are on operational lease.