Odfjell Terminals has delivered increased financials in its fourth quarter 2017 results due to higher occupancy and revenues at its Houston terminal.
The terminal division delivered an EBITDA of $9.8 million in Q4 2017 compared to $8.7 million in the previous quarter. The increase is mainly attributed to higher storage revenues in Houston thanks to higher occupancy and other services. Additionally, Odfjell's Q3 results were negatively impacted by Hurricane Harvey.
Total average available capacity amounted to 2.89 million m3 – an increase of 81,000 m3 thanks to the return to service of tanks in Rotterdam following completion of outfitting upgrades and maintenance.
The company says in an update that distillation activities at its Rotterdam terminal continues to report stable results and counters the negative market effects for conventional storage at the terminal.
Its second half year 2017 revenues for its PID reached €15 million compared to €12 million in its first half 2017 result. Tank storage at the terminal dropped to €14 million from €18 million in the same period.
However, the terminal benefits from a unique benefit in light of the upcoming 2020 low sulphur emission regulations, where it can produce and supply compliant fuel.
Overall, Odfjell SE reported an EBITDA of $41 million, compared to $37 million in the previous quarter.
Kristian Mørch, CEO Odfjell SE, says: Our markets have remained challenging in 4Q, but Odfjell continues to make good progress.'
He adds that the company expects storage demand for oil minerals to remain challenging, but expects stable demand and results for chemical storage.
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