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Our shareholding in tank terminals contributed an EBITDA of negative USD 0.6 million in the fourth quarter. With the exception of Odfjell Terminals (Rotterdam) (OTR), terminal results were mainly in line with our expectations. OTR however, has applied for a new environmental operating licence, which has made it necessary to suspend further re-commissioning of old tank capacity. In the meantime, OTR is continuing to develop its long-term business plan. In line with the preliminary plan, and expected reduced available capacity and throughput level at the terminal in the coming years, an impairment of net USD 76 million was recognised in the fourth quarter in respect of certain assets, including customer relations and goodwill. The US posted its strongest GDP growth for the last three years on the back of a substantial acceleration in private sector demand led by stronger consumer spending and a significant pickup in exports. The European economy has continued its gradual improvement, with Germany and the UK leading the way. China's economic growth is decelerating, with growth of still healthy 7.7% in the fourth quarter, but somewhat weakening exports and investments. The fundamentals within the LPG/Ethylene segment continue to improve, and we expect stronger earnings in 2014 for our gas carriers. The US shale gas and oil resurgence is breathing new life into the US chemical industry. Based thereon, we expect a slow but steady increase in demand for Odfjell's services. We expect first quarter of 2014 to be slightly better than the fourth quarter in 2013 for our company's chemical tankers. With regard to terminals, with the exception of OTR, we expect continued stable results. Please find the full fourth quarter 2013 Report and Presentation in www.odfjell.com The Odfjell Group is one of the leading players in the global market for seaborne transportation and storage of chemicals and other speciality bulk liquids. The Odfjell fleet comprises of approximately 90 ships, which trade both globally and regionally. The tank terminal division consist of 12 tank terminals and is part of a network of another 12 tank terminals partly owned by related parties. The tank terminals are strategically located within important shipping hubs around the world. The Odfjell Group’s headquarter is in Bergen, Norway, and the Group has more than 20 offices internationally. Odfjell employs around 3,500 staff and posted annual gross revenue of USD 1.2 billion in 2012. Odfjell press release |
