Odfjell Terminal has started exploring a possible sale of its shares in Oiltanking Odfjell Terminals Singapore.
In its first quarter financials the company says that its focus is on growing its operated terminals and to finance major investment projects, it will consider divesting non-operated terminals.
It adds that in 2016, the Singapore terminal, a joint venture between Odfjell and Oiltanking, delivered an EBITDA of around $10 million in the Odfjell share.
Elsewhere the company started the basic engineering phase for the first independent ethylene export facility in the US, located at the entrance of the Houston Ship Channel at its Seabrook terminal in Texas. A final investment decision based on satisfactory customer commitment and financing is expected to be made in either the second or third quarter of 2017.
Overall, Odfjell Terminals delivered an EBITDA of $9.4 million in the first quarter 2017 compared to $10.7 million in the previous quarter.
The company says: ‘The end of the contango for middle distillates might negatively impact the utilisation of conventional storage at Odfjell Terminals Rotterdam in the coming quarters. However, during 1Q we signed long-term contracts for the majority of our distillation services capacity.’
Kristian Mørch, CEO of Odfjell, adds: ‘We expect 2017 to remain challenging, but our underlying operational performance is stable.’