Payout lifts Odfjell

Odfjell returned to the black in the fourth quarter, but only thanks to a one-off compensation payment of $43m.

The $43m was award following Odfjell’s dispute with Russian shipbuilder Sevmash over a failed 12 ship newbuilding project.

Odfjell believes the market bottomed in the fourth quarter

Profits for the final quarter were $14m, 83% lower than the $81m seen a year ago. However, the 2008 figures were buoyed by $43m in capital gains.

Gross revenues at the Oslo-listed chemical tanker operator declined year-on-year by nearly 10% to $320m.

For the full year Odfjell booked a profit of only $11m compared to a profit of $163m in the whole of 2008.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2009 were $182m compared to $286m the year before.

Operating expenses as well as general and admin were lower than in 2008, partly due to cost savings and a stronger US dollar.

EBITDA at Odfjell’s parcel tanker segment was $73m, some 62% down on the $191m seen in 2008.

The time-charter result expressed in US dollars per day declined about 19% in 2009, compared to 2008 and by 7% from the third to the fourth quarter.

Odfjell said the average cost of bunkers in the fourth quarter was $416 per ton compared to $421 per ton in the preceding quarter.

Daily operating expenses on a comparable fleet basis were 1.3% lower in 2009 than the full year 2008 figure.

EBITDA at Odfjell’s tank terminals for 2009 was $109m, up from $95m last year.

Odfjell Terminal operations in Rotterdam and Houston both posted increases in EBITDA of 12% to $57m and $28m respectively.

Odfjell’s share of the terminals in Oman, Korea, Singapore and China turned in an EBITDA of $23m.

Looking ahead Odfjell said 2010 had started on a slightly more positive note on the shipping side, especially for especially for clean petroleum products, acids and exports of basic chemicals from the Middle East Gulf.

“Disposal of older units will give us better utilization, enhancing the results of the rest of the fleet,” it added.

Odfjell said deliveries of newbuildings will continue, and the net supply will increase also in 2010, although ordering of new tonnage has “significantly diminished.”

“Recycling of ships will likely accelerate, and we also expect to see some of the new ships contracted for delayed or not delivered.”

The rise in bunker prices continues to be a concern, and may hamper the recovery of our time-charter results, although a part of the 2010 exposure is hedged at attractive levels.

“We expect a continued challenging market, whilst we believe that fourth quarter 2009 should represent the bottom.”

“We expect tank terminal results to remain strong, on the back of a successful expansion program and strong demand for storage space as well as a solid contract base.”

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