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

Odfjell climbs out of the red in Q2 with best result since 2008
Odfjell has reported net profit of $7m in the second quarter, the company’s best quarterly result since Q3 2008, reversing a $26m loss in the same period last year.

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.