Odfjell results deteriorate

Odfjell has seen its financial performance go from bad to worse with a $29m loss in the first quarter of 2014.

Twelve months ago the Oslo-listed chemical tanker operator posted a loss of $13m.

Odfjell said revenue for the three months was $266m versus the $256m seen in the first quarter of 2013.

“The first quarter continued on a slow and disappointing pace as congestion, delays and bad weather caused operational challenges, inefficiencies and increased cost,” Odfjell said of the performance of its chemical tanker operation.

“This resulted in an unfavourable allocation of tonnage to handle time-sensitive contract commitments.

“US exports held up, but results and benefits were negatively influenced by severe delays caused by fog.

“In general, rates came under pressure during the quarter as tonnage was abundant. Middle East and South America in particular, had too many vessels competing for marginal business."

Looking ahead to the second quarter Odfjell said it notes increased activity and less delays and interruptions.

“Allocation of gas to the Iranian petrochemical industry resumed at the end of first quarter, which could result in higher production and increasing volumes for export,” it said.

“Though rates remain under pressure due to excessive supply of ships, we see results improving by more efficient trading of our ships.

“Volumes nominated and shipped also show positive developments, as most of our contract partners appear to benefit from good and steady demand.”