Eitzen still in red

Cancellation charges and depressed freight markets kept Camillo Eitzen in the red during the first quarter with results from its shipowning units again branded “unsatisfactory”.

CECO Chairman, Axel Eitzen.

Oslo-listed CECO posted a loss of $5.9m for the quarter following an $11.4m reversal on asset sales.

Its bottom line was, however, better than the $12.1m loss recorded a year ago and the staggering $495.2m black mark which stained its balance sheet in the fourth quarter of 2008.

CECO says Eitzen Gas paid $2.5m for the cancellation of newbuildings. Eitzen Chemical was hurt by an $8.9m loss on asset sales, of which the majority was linked to its orderbook.

Freight income plunged from $384.5m to $213.0m year-on-year.

Eitzen Gas saw its EBITDA slip from $19.9m to $8.0m. But it says utilisation is picking up after it sliced its fleet by six vessels through sales and the return of chartered tonnage.

In a bid to cut costs the unit also made some staff redundant and closed its Dubai office, its first quarter report says.

Figures at Eitzen Bulk were also damaged by weaker freight markets, with EBITDA down from $6.9m to $2.1m.

CECO said: “The outlook for most regions is expected to remain under pressure for the remaining of the year. Linked to the weak global economy, the raw materials prices are expected to continue remain low going forward.

“We believe that demand for dry bulk commodities by China and India, combined with higher congestions, will have a short-term positive effect on the bulk rates going forward.”

Eitzen Chemical reported a $4.7m loss for the quarter, while Eitzen Maritime Services booked a minimal net result of $0.9m.

CECO said: “Although we have seen improvements in EBITDA from Eitzen Gas and Eitzen Bulk, the results from the shipping segments are still unsatisfactory, while EMS delivered satisfactory results.”

Looking forward, the shipowner added: “CECO expects the challenging markets to continue for the remainder of 2009.”

Printable version Newsletter sign up