The oil market contango has helped drive a slight improvement in Odfjell’s stable terminals segment.
According to the bulk liquid storage operator, performance was driven in part by revenues at its PID distillation unit in Rotterdam and continued high demand for spot and mid-term storage due to the favourable market conditions.
The tank terminal business segment delivered an EBITDA of $9.9 million (€9.2 million) up from $9.6 million (€8.9 million) in the previous quarter.
In addition, extra available capacity at the company’s terminals in Houston and Charleston contributed to a slight increase in the EBITDA of its North American terminals.
Odfjell Terminals (Rotterdam)’s PID business, coupled with the reorganisation strategy implemented last year have improved the results further. The EBITDA was improved further to negative $76,000 million compared with negative $1.6 million in the previous quarter.
Cash flow at all terminals improved due to the cost saving and efficiency plans implemented last year.
Overall, occupancy rates for commercially available space swelled to 94% from 92% across the tank terminal group.
Delays are anticipated for getting the necessary operational permits for the company’s new terminal in Tianjin.
In Rotterdam additional commercial tank capacity has become available ahead of schedule. In the third quarter, additional capacity has been added with a total of 939,000 m3 being commercially available by the end of September compared with 860,000 m3 at the end of previous quarter.
Further capacity is expected to be added by year end.
The company said that global growth remains modest at 3% to 3.5% and that is expects fourth quarter to be weaker than the third quarter for its chemical tankers. With respect to its terminals, the fourth quarter is expected to be in line with its third quarter.