Odfjell’s underlying performance significantly improved in 2015 thanks to the completion of its cost-cutting and efficiency programme.
In its preliminary full year report 2015, the storage operator recorded a full year EBITD of $190 million compared to $96 million the previous year.
Additionally, Project Felix, its cost-cutting programme, was successfully complete, ahead of target of more than $100 million in annual savings.
In its fourth quarter results, the company summerised that it experienced stable underlying operational performance however, there were softer markets towards the end of the quarter.
Its terminals segment was stable however there was a $2.5 million write-off relating to a greenfield project in China.
Its Rotterdam facility has commitments for new contracts that will ramp up during the first half of 2016 and utilise the majority of the distillation capacity for 2016.
Odfjell’s tank terminals business delivered an EBITDA of $11.4 million, up from $9.9 million in the previous quarter. Performance was driven partly by revenues at its PID distillation units in Rotterdam, Bay 10 in Houston and continued high demand for spot and mid-term storage related to the contango in the oil markets.
Occupancy rates remained static at 94%, the same as the previous quarter and there was a 36,420 m3 increase in available capacity.
In Tianjin, the company expects that there will be further delays in obtaining the required operating permits as a result of the explosion in the old harbour last year. A one-off charge of $2.5 million was made in relation to the valuation of the greenfield project at Odfjell Terminals Quanzhou.
Looking ahead, the company expects its 2016 results to improve as a result of strong PID distillation activity and better storage results at Odfjell Terminals Rotterdam and stable results for the other terminals.