Odfjell's terminal division has reported an EBITDA of $6 million in its third quarter financials in line with the previous quarter.
Odfjell Terminals US reported improved EBITDA mainly driven by lower allocated costs as a consequence of the closure of headquarters in Rotterdam. Utilisation at the Houston terminal remained at 100% for the quarter and throughput was stable compared to the previous quarter.
During its third quarter, the company sold its 55% ownership in Odfjell Terminals Jiangyin for $46 million. The transaction resulted in a capital gain of $14 million and net cash proceeds of $21 million for Odfjell SE.
As part of Lindsay Goldberg's exist from Asia, Odfjell SE has said it may consider tagging along on a sale of its ownership in the terminals in China. The process will be concluded in the coming quarters.
In connection with Lindsay Goldberg's exit, Odfjell has reorganised its terminal division to reflect the current portfolio and governance requirements. As a result, Odfjell has moved its terminal division to Bergen and close Odfjell Terminal's previous headquarters in Rotterdam as well as its office in Singapore.
Odfjell SE reported an EBITDA of $51 million compared with $57 million in the second quarter of 2019.
Kristian Mørch, CEO of Odfjell SE, says: 'The third quarter was impacted by the usual seasonal slowdown in volumes while rates remained stable. Since then, the market has normalised and we are encouraged to see improvement in volumes and improved crude and product tanker markets, which should positively impact our markets going forward. We are further encouraged by ongoing improvement in contract rates and that customers are accepting pass-through of potentially higher bunker costs related to IMO 2020. We expect to report improved results in the fourth quarter.'