Odfjell has shared its third quarter results, with the company summarising that business is ‘improving, but not yet sustainable’.
The company’s shareholding in the tank terminals business delivered an EBITDA of $4 million (€3.2 million) in the third quarter.
With the exception of the tank terminals in Rotterdam and Charleston, the terminal results were positive and in line with previous quarter. The tank terminal group, excluding its terminal in Rotterdam, had a gross occupancy of 92% as by end of September.
Odfjell’s Charleston terminal has been fully operational since the start of 2014, and contracts for the full capacity are in final negotiations. The addition of new stainless steel tank capacity in Houston was completed early September with full occupancy, and the new 17,150m3 tank pit construction is underway with expected completion in the fourth quarter of 2015. The construction of the new Tianjin Terminal in China is progressing with start of operations scheduled in 1Q 2015.
Odfjell Terminals (Rotterdam)’s EBITDA for third quarter ended negative $6 million.
The company’s commercial focus remains on ‘improving utilisation of the distillation units’. Two tank-pits supporting the distillation units will be re-commissioned in fourth quarter of 2014.
Odfjell’s report concluded that ‘with regard to terminals, we expect improved results at Odfjell Terminals (Rotterdam) due to increased utilisation and a lower cost base. For the remainder of the terminals we expect a slight increase in earnings due to increase capacity’.