Lower bunker prices cushion Odfjell loss in Q3
With the shutdown of Odfjell Terminals in Rotterdam (OTR) and continuing weakness in the chemical market, Norwegian bulk chemical transportation and storage company Odfjell said it lost $39 million on revenues of $276 million in the third quarter of 2012, compared with profits of $261 million and revenue of $309 million for the same period last year, Ship & Bunker reports.
The company shut down the Rotterdam terminals on July 27, 2012 to address safety concerns, and has since restored around 45 percent of capacity there, with plans to reach 75 percent during the first quarter of 2013.
OTR lost $20 million in the third quarter, and the company is now negotiating a plan to reduce the workforce there.
Odjfell said lower bunker prices cushioned its results compared with the second quarter, as its chemical tankers revenue fell from $269 million to $245 million over the quarter, but net bunker costs dropped to $516 million from $533 million.
The average price of bunkers purchased in the quarter was $654 per metric tonne (pmt), approximately $30 pmt lower than in the previous quarter, it said.
"The difficult fiscal situation in Europe and in the US, and slower growth in China, are negatively impacting trade and thus, delay the upturn for the chemical tankers," the company said.
"We expect to deliver stable results from the tank terminal division; however, the situation at OTR will continue to negatively impact the results of our tank terminal activities for the coming quarters.
"Based on a successful implementation of our recovery plan, we expect OTR to deliver improved results in 2013."
