Odfjell climbs out of the red in Q2 with best result since 2008

The group’s Q2 profit also represents a climb from a $32m loss in Q1, nearly halving its year-to-date loss to $25m from $48m in the same period in 2014.

The increase was attributable largely thanks to Odfjell’s chemical tanker fleet, with the Odfjell chemical freight index (ODFIX) rising 5% in the second quarter reflecting a buoyant market for chemical tankers, combined with cost-cutting measures which reduced Q2 fleet operating expenses by 21% compared with the Q2 2014.

However the group predicts a “slightly softer” market going into the third quarter with “slightly lower earnings… however, mitigated by lower cost base," Odfjell said in a statement.

Meanwhile Odfjell reported a break-even from its tank terminals in Q2, an improvement over the $11m loss recorded in the same period in 2014.

The group is expected to raise $65m liquidity with the refinancing of its vessels in 2015.

Looking ahead the company a similar result in the third quarter. "We expect third quarter 2015 to be similar to the second quarter for our chemical tankers on a further reduced cost base, but with a slightly softer market. With regard to our terminals, we expect stable to improved earnings on capacity expansions and continued positive development at Odfjell Terminals (Rotterdam)," it said.

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