Odfjell Terminals has recorded a lower EBITDA in its third quarter due to lower storage revenues and the effects of Hurricane Harvey.
The operator delivered an EBITDA of $8.7 million in the third quarter compared to $10.3 million in the previous quarter. The reduction is due to lower storage revenues, primarily in Rotterdam, as a result of the departure of 'contango customers' and the disruption at its Houston facility following Hurricane Harvey.
The average occupancy rate of commercially available capacity was 86%, compared to 92% in the last quarter as a result of the contango effect in Rotterdam.
The company has finalised the basic engineering and has all the required permits in place for the first independent ethylene export facility in the US, based in Houston. A final investment decision is expected in the first quarter of 2018.
Additionally, its new facility in Tianjin, China, has received it final permit to operate, and the opening of the port for foreign vessels is expected in the fourth quarter. Its value creation programme in Rotterdam is progressing and PID production is stable, at expected levels.
Kristian Mørch, CEO of Odfjell, says: 'The third quarter was a challenging quarter for our tanker and terminal divisions. Our balance sheet remains robust and our competitiveness continues to increase, so we are positioned to benefit once our markets recover. The sale of our Singapore terminal, in line with our strategy, will result in a significant gain.'
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