Norway-based bulk liquid transportation and storage company Odfjells tank terminal division has seen an increase of $14 million (10.2 million) earnings before interest, taxes, depreciation, and amortisation (EBITDA) for 2009, up from $95 million last year.
EBIT for 2009 was $68 million, compared to $69 million last year.
EBITDA of Odfjell Terminals (Rotterdam) was $57 million in 2009, compared to $51 million last year. Odfjell Terminals (Houston) showed an EBITDA of $28 million in 2009, compared to $25 million in 2008. Odfjells share of the terminals in Onsan, Korea, Singapore, Oman and in China turned in a combined total EBITDA of $ 23 million.
In 2008 Odfjell acquired AVR Maritiem, which was renamed Odfjell Terminals Maritiem (OTM). The principal business activities of the company were jetty services and waste handling.
The most important element at the time of the acquisition was the additional berth facility for Odfjell Tankers board to board operations in the Rotterdam harbour. The waste handling activity of OTM has been badly affected by the worldwide economic crisis and the subsequent reduced shipping activities within Rotterdam.
In order to avoid future losses, it has been decided to discontinue the waste handling activity of OTM as per the end of 2009 and to decommission the related equipment. The plan is to consolidate the land lease contract and jetty into OTR. The accounting effect of the discontinuation was a nonrecurring pre-tax charge of 8.5 million ($12 million) as a combination of redundancy costs and write-off of fixed assets. The after-tax effect was 6.3 million.