Better figures for Odfjell

NORWEGIAN parcel tanker and chemical terminal operator Odfjell made a Q2 net profit of US$66, up from $35m in Q1. The company says time-charter results per day improved by about 21% compared to the same quarter in 2006, due to higher freight rates and lower bunker costs.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) first half 2007 were $175 million compared to $130m for the first half of last year.

The company notes: “Operating expenses as well as general and administrative expenses were higher in 2007 than in 2006 partly because of general price increases and a weaker USD.”

Regarding its prospects the company says: “The financial and the commodity markets have become volatile as of late. However, the world’s real and physical trade continues to look healthy. Deliveries of newbuildings continue strong. Despite new legislation and increasingly stricter customer requirements for parcel tankers, making older tonnage technically and/or commercially obsolete, the net supply will be increasing over the next few years. Odfjell has renewed contracts at improved terms, reflecting customers’ expectations for increased activity and a tighter market. High bunker prices and ship operating expenses, however, will continue to weigh on us. We do expect tank terminals to remain strong, and further tank terminal projects are under consideration. All in all, we anticipate a solid operating result in 2007.”