Odfjell Terminals Reports Decreased Revenues in Q1 Driven by Restructuring Practices
05.20.2019 - NEWS

March 20, 2019 [ Tank News International] – Odfjell Terminals has reported revenues of $17.6 million in the first quarter, down from $25.2 million in the same period last year but up from $17.2 million in the fourth quarter.

The segment also reported an EBITDA of $6.7 million in the first quarter, up from $5 million in the fourth quarter of last year and $6.3 million in the first quarter of 2018.

Main changes in results compared to the fourth quarter it said was driven by $2 million of legal and tax restructuring expenses as well as IT unwinding expenses in previous quarter.

Total average occupancy rate of commercially available capacity remained at a stable level of 96 percent. The total average available capacity increased slightly by 6,353 cbm to 1,489,679 cbm.

Odfjell Terminals will close its headquarter in Rotterdam in June 2019. Odfjell Terminals will thereafter be controlled from Odfjell’s headquarter in Bergen, in an effort to reduce costs. As a consequence, Frank Erkelens will step down as CEO for Odfjell Terminals during 2019 and a new global head of terminals will be relocated to Odfjell’s headquarter in Bergen.

The company’s total approved capital expenditure is $15 million for 2019-2021, of which $7 million is for maintenance and $8 million is for expansion.

“Our capital expenditure programme for the U.S. is expected to be updated when the transaction with the new partner is concluded for the U.S. terminals,” the company said in its first quarter report.

Odfjell’s share of Odfjell Terminals’ book value of equity stood at $158 million as of the fourth quarter. Odfjell’s share of net debt amounts to $133 million.

In the Lindsay Goldberg (LG) exit process, LG has initiated the sales process of its 49 percent shareholding in Odfjell Terminals Asia. The transaction for Odfjell Terminals US is expected to conclude in the first half.

 
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