Odfjell has reported improved financials for its terminal division as a result of its restructuring of the portfolio as well as increase tank lease and service revenues in the US and Dalian.
The segment reported an EBITDA of $8 million in its fourth quarter financial results compares to $6 million in the previous quarter. Total average available capacity decreased slightly by 11,723 m3. This decreased capacity reflects Korea carrying out periodic maintenance on some of its tanks, while the US carried out customer outfitting of one of its tanks at the Charleston terminal.
Over the last few months, Odfjell has been working with its joint venture partners in the US and Antwerp to develop strategies to further improve and grow its terminal facilities. This will involve initiatives to modernise and automate the terminals, as well as expanding capacity on existing land banks. Odfjell says that Houston will be a main target for growth.
Projected capital expenditure for 2020 – 2022 is $64 million, of which $32 million is growth related capex and $32 million is related to maintenance capex.
The company confirmed that its two terminals in China are operating as normal despite the coronavirus outbreak affecting the country. The terminals are located in the Northeastern part of China, which has so far been less affected by the virus. Measures are being taken to mitigate exposure to the virus and prevent it from spreading.
As part of Lindsay Goldberg's exit from Asia, Odfjell SE may consider tagging along on a sale of its ownership in terminals in China. The process is expected to be concluded in the coming quarters.
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