Odfjell Terminals reports strengthened financial results in the fourth quarter 2018, with revenue growth in its Asian and US facilities.
Odfjell SE’s terminal division delivered an EBITDA of $4.7 million in the fourth quarter of 2018 compared to $3.9 million in the previous quarter.
Revenues in the US region grow by 3% in comparison to the previous quarter thanks to a continuing high occupancy rate of 98% and increasing throughput at the Houston terminal.
The Asian region grow by 15% in comparison to the previous quarter with all terminals in the region contributing. The fourth quarter 2018 result was impacted by higher G&A related to the restructuring of the Odfjell Terminals organisation.
The company concluded the restructuring of the organisation in the fourth quarter. Odfjell Terminals B.V. and the terminal management companies are now wholly owned subsidiaries of Odfjell SE. Tank terminals are now operated through two joint ventures, one for the Asia terminals and one for the US terminals.
Total approved capital expenditure is $10 million for the next three years, of which $3 million is for maintenance and $7 million is for expansion.
Following the conclusion of the sale of Lindsay Goldberg’s shareholding in Rotterdam and Antwerp, LG has entered into an agreement to sell its 49% shareholding in Odfjell Terminals US terminals to funds managed by Northleaf Capital Partners.
This transaction is expected to close during the first half of 2019.
Kirstian Mørch, CEO of Odfjell SE, says: ‘4Q18 concluded a challenging year for chemical tankers, but the market improved towards the end of the quarter. This is consistent with our view that the market has healthy fundamentals.
‘We do expect continued volatility but we believe our markets have passed the bottom, and we therefore expect improved performance in 1Q19. We are pleased to welcome a new partner in our US terminals that positions us to further develop our US business.’