A second quarter 2012 EBITDA of USD 27 million reflects primarily a soft chemical tanker market. The overall tank terminal earnings remained steady during the period, despite increasing challenges and costs at Odfjell Terminals (Rotterdam). Subsequent to this period of reporting, this terminal carried out a safety shut-down of operations.
For the chemical tankers business, second quarter of 2012 showed a weaker performance with reduced demand and softer freight rates. The time charter result ended down 15% compared to first quarter of this year.
Late July we entered into a newbuilding contract with Hyundai Mipo Dockyard, Korea for four 46,000 DWT chemical tankers with 22 coated cargo tanks. We also have options for four additional vessels. The contract price is considered favourable. This contract represents an important step in Odfjell's fleet renewal programme, and features eco-friendly and fuel efficient design. In June we received the first of three 9,000 DWT stainless steel newbuildings from the Chongqing Chuandong yard, China.
In June we signed a purchase contract for two 9,000 CBM LPG/Ethylene carriers, as the first stage of a re-entry into the gas carrier segment. The vessels are scheduled for delivery in August and September of this year.
The global economic outlook remains weak, as the uncertainty surrounding the European debt crisis continues and the macroeconomic picture in China appears to be deteriorating. A moderate recovery of activity, particularly in the spot market, may stimulate some rate improvements, similar to those seen in 4Q11 and 1Q12.
We expect the situation at OTR to negatively impact the results of our tank terminal activities for the remainder of the year.
Please find attached second quarter report and presentation.
For more information, please contact:
Jan A. Hammer, President/CEO
Tel: + 47 55 27 00 00
Email: jan.hammer@odfjell.com
or
Terje Iversen, CFO Odfjell SE
Tel: + 47 55 27 00 00
Email: terje.iversen@odfjell.com
