For the chemical tankers business, activity over the summer and through the third quarter held steady and was in line with the second quarter on both contract nominations and spot activity. 

Our shareholding in tank terminals business contributed an EBITDA of USD 7 million in third quarter, the same as in previous quarter.

With the exception of OTR, terminal results were largely in line with expectations. Increased throughput in the United States beginning end of second quarter has continued, and has extended into early fourth quarter. Activity in Asia is broadly speaking on budget, but occupancy challenges have emerged in Korea as a result of considerable additional capacity coming on stream in Ulsan the past two years.

OTR’s third-quarter EBITDA came in at minus USD 7.9 million, only a slight improvement compared to second quarter’s minus USD 8.4 million. The third-quarter EBITDA result included USD 3.0 million in non-recurring items. Capacity approved for use at the end of the third quarter was just over 1 million cbm. Occupancy at the end of September was 85% of commercially available capacity. All tanks in the new part of the terminal are in operation. Active cost control efforts continue.

New regulatory requirements and the submission of an application by OTR for a renewed environmental permit, have made it prudent to halt temporarily further re-commissioning of old tank capacity at the terminal. In the meantime OTR has initiated an intensive process of developing a revised business plan. This plan, which is scheduled to be completed within year end, will reflect the regulatory environment and address future business opportunities given the strategic location of the terminal.