Eitzen comes up short

Eitzen Chemical has reported a disappointing second quarter with figures coming in well below analysts’ estimates.

The Oslo-listed tanker owner reported ebitda of $4.8m versus the $15.4m seen a year ago as freight rates remained weak. Analysts had anticipated a profit of $9m.

Eitzen said the weaker market and disappointing development experienced in the first quarter continued in the second quarter.

The Jens Gronning-led shipowner reported an average time charter equivalent rate (TCE) for its fleet of $10,284 per day.

This was 4.1% down on the rate seen in the first quarter and 13.7% lower than the corresponding quarter in 2013.

A weaker transatlantic clean products market and a softer market on the USGC – Far East trade combined to create the weaker rate environment.

Eitzen said it expects a continued weak market and pressure on the TCE rate in the third quarter of this year.

The orderbook for chemical tankers is about 15% of the fleet and in 2013 saw net negative fleet growth of 200,000-dwt or 0.7%.

The quarter saw Eitzen complete the sale and leaseback of the 19,932-dwt North Fighter (built 2006) which resulted in a book gain of $2.4m.