Improved tank terminal performance driven by high demand for various types of storage has resulted in Odfjell boosting revenue in the first quarter of 2015.
Odfjell’s shareholding in the tank terminals business delivered an EBITDA of $9 (€7.9) million in the first quarter, an increase from $2 (€1.7) million in the previous quarter.
The company says that performance was driven by improved results from their terminal in Rotterdam and also by the high demand for spot and mid-term storage.
Tank terminal revenues increased by $3 million to $27 million in the first quarter of 2015. All terminals have benefited from cost saving plans implemented in 2014.
Gross occupancy rates improved to 91% compared to 87% by the end of December, mainly due to the progress in Rotterdam, Charleston and Korea. Additional commercial capacity has also come on stream ahead of schedule, with a total of 826 m3 available as of March 2015.
Discussions are in place about potentially adding further capacity to be commercially available based on market demand.
The company’s cost-cutting and efficiency programme, which aims to improve their net result by more than $100 million on a yearly basis by the end of 2016, has been running for three months. It involves reductions in personnel as well as other ‘cost-cutting initiatives’. In November 2014 the storage operator said that the business was ‘improving, but not yet sustainable’ when it released its third quarter results.
Energy efficiency initiatives are on schedule and will first take full effect in 2016.