Chemical tanker market remains 'challenging', says Odfjell

Chemicals and bulk liquids shipping giant Odfjell reported its fourth quarter results on Thursday, which the board said reflected a “challenging” chemical tanker market with some seasonal improvements.

The firm said the market for terminals improved slightly compared to the third quarter, while its EBITDA reached $41m, compared to $37m in the previous quarter.

It reported net results of $96m, compared to -$11m in the previous quarter.

Those net results included a capital gain of $136m and impairments of -$43m.

The company concluded the sale of Odfjell Terminal B.V.'s Singapore terminal during the period, contributing $150m in cash, of which $117m had been transferred to Odfjell SE.

Odfjell also signed a framework agreement with Sinochem for the establishment of a pool of sophisticated chemical tankers, managed by Odfjell SE.

Based on the company's profit from the sale of the Singapore terminal, the board proposed a dividend of NOK 1.50 per share.

That dividend remained subject to shareholder approval, and would be voted on at the company's annual general meeting, scheduled for 8 May.

“Our markets have remained challenging in the fourth quarter, but Odfjell continues to make good progress,” said CEO Kristian Mørch.

“We have recently achieved our growth ambitions by renewing our fleet and participating in the consolidation in a capital efficient way, and we have at the same time strengthened our balance sheet through disposal of non-core assets.”