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OTR has initiated several cost cutting initiatives and is in the process of 'preparing' a plan to reduce the work force to match the reduced activities at the terminal. As previously informed, the situation at OTR will negatively impact the results of our tank terminal activities for the remainder of the year. OTR expects an operating loss (EBITDA) of US$ 25 - 30 million in the second half of 2012, compared to a marginally positive EBITDA in the first half of the year. The estimates for second half of 2012 include provisions for customer claims and other expected costs. These figures are based on Odfjell's 51% share in OTR. Based on a successful restructuring and implementation of the recovery plan, we expect OTR to deliver improved results in 2013. Since 2010, OTR has had a 5 year plan in place to execute the necessary safety improvements of its technical installations and tank pits. This investment programme has now been accelerated and increased by an estimated 30%. US$ 100-133 million (Odfjell share) has been allocated for this; the range being subject to future scope of replacements. The result for our other tank terminals is expected to stay at stable levels the next quarters. Continued weak results for the chemical tankers Although some encouragement was noticed for our chemical tankers in specific trades at the beginning of third quarter, the general activity has been consistently low and disappointing. Based hereon, the results from the chemical tanker segment in third quarter are expected to be somewhat lower than in second quarter. Odfjell press release |
