Bergen-based seaborne transportation and bulk liquid storage player Odfjell saw net profit significantly drop by 883.6% on quarter in the second quarter (Q2) of 2018 even after sales of its Rotterdam terminal.
The firm recorded net loss of USD $120.0 million in Q2 2018, compared to net loss of USD $12.2 million in the first quarter (Q1) of 2018, according to its latest financial statement.
Revenue in Q2 2018 was USD $236.7 million, 0.9% lesser than revenue of USD $238.9 million in Q1 2018.
In Q2 2018, the company’s tank terminals segment posted net loss of USD $104.0 million representing a huge increase from net loss of USD $2.1 million in Q1 2018.
The tank terminals segment saw USD $58 million of impairments and tax losses of USD $43 million related to the sale of its Rotterdam terminal; the transaction is expected to have a positive cash contribution of about USD $100 million.
“The sale of our Rotterdam terminal will further strengthen Odfjell SE as a company,” said Kristian Mørch, CEO Odfjell SE.
“The planned increase in our shareholding in our j/v terminal in Antwerp will ensure a foothold in Europe, with Antwerp being the most important port for chemicals in the EU.
“Chemical tanker spot rates weakened further during the quarter, but we continued to outperform the market indexes due to strong contract coverage.”
The chemical tankers segment posted net loss of USD 16.2 million in Q2 2018, more than loss of USD $10.4 million in Q1 2018.
It noted that the average bunker cost was USD $410 per tonne in Q2 2018, up from USD $406 per tonne in the previous quarter.
“We have 62% of our bunker exposure covered through bunker adjustment clauses and we currently do not have any financial hedging for bunkers,” notes the company.
Odfjell, meanwhile, noted of a “significant incident” which took place in Q2 2018.
“On June 23rd, on the way to the assigned berth for loading, Odfjell’s vessel Bow Jubail made contact with the jetty and accidentally ruptured the hull,” it said.
“This caused about 217 tons of heavy fuel oil (HFO) to leak from the adjacent fuel tank. Actions were immediately taken to limit the spill.
“Odfjell is cooperating closely with local authorities, insurance partner Gard and other partners to mitigate the consequences from this incident, in full compliance with Dutch and international regulations.
“There were no personnel injuries, and the vessel did not carry any cargo. The incident and clean-up operation will be investigated by the Dutch Safety Board.”
The Port of Rotterdam Authority earlier said it is seeking to recover an estimated EUR 80 million from Odfjell, the owner of Bow Jubail, which spilled bunkers in the facility in late June.
Related: Odfjell faces EUR 80 million bill over Bow Jubail bunker spill
Photo credit: Odfjell Terminals
Published: 27 August 2018
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