Odfjell Terminals’ Q4 2020 results have fallen by US$1.2 million compared to Q3 2020, to US$6.6 million, a figure also down on its Q4 2019 EBITDA of US$8 million.
Net profits were down by US$600,000. The company took a financial hit following a hydraulic oil fire in the power pack room at Odfjell Terminals Houston in the US. While the fire was quickly extinguished and there were no injuries or spills, some essential systems were damaged, resulting in a suspension of regular operations and a force majeure that was only lifted in late January 2021. The company does not expect the incident to have a material impact on the overall results, however.
Also in December, parent company Odfjell SE bought Lindsay Goldberg’s 24.5% stake in Odfjell Terminals Korea (OTK) for US$19 million.
Odfjell says that the underlying demand for storage remains high and its average commercial occupancy rate is at 97%. Activity levels at terminals are stable compared to Q3, with the average number of handlings down 6% and throughput volumes up by 16%.
Odfjell Terminals Houston is moving towards a final investment decision on the expansion of Bay 13, which includes 32,000 m3 of additional storage for speciality chemicals and should be operational in 2022. Noord Natie Odfjell Antwerp Terminal (NNOAT) has embarked on a 35,000 m3 expansion, also due to be operational in 2022.
Overall, Odfjell SE, which includes the tankers division, is doing well, and reported preliminary full-year net profits of US$28 million for 2020, compared to a loss of US$37 million in 2019.