Odfjell's performance in its terminals portfolio has helped to soften to impact of challenging energy markets.
Odfjell Terminals reported an EBITDA of $10.4 million in the second quarter of 2017 compared to $9.4 million in the previous quarter. This result saw some negative effects from the end of the contango for middle distillates, mostly affecting its Rotterdam terminal.
The company expects this to continue, however, the long-term contracts for most of its distillation services capacity at the terminal will provide a stable source of income.
Odfjell Terminals has finalised the basic engineering and have all the required permits in place for its first independent ethylene export terminal in Houston, US. It is ready to start construction as soon as it has the appropriate commitments from customers, with whom it is in continuous dialogue to finalise agreements.
Additionally, the company initiated the process to potentially sell its shares in the Singapore terminal. It has received high interest from numerous potential buyers.
Odfjell has also completed the sale of its 35% indirect ownership share in the Exir Tank Terminal in Iran.
Kirstian Mørch, CEO of Odfjell, says: 'We are not satisfied reporting a net loss for the quarter, but our operational performance remains strong. The CTG transaction completed our current growth ambitions and ensures that Odfjell can continue to offer competitive and efficient service to our customers.'
Growing Contanda's storage footprint in HoustonPetrochemical production fuels a bright storage future Oil market eyes November Iran sanctions hiatus A new name in Cushing Unleashing the potential of American energy Storage for the US's largest refining market Expanding the US global market share Trade war questions temper US midstream sector growth plans Safe & productive solutions for tank cleaning Ground improvement plays supporting role for storage tanks