Odfjell loses $23m as it admits 'continued weak results'

In an earnings release entitled "continued weak results," Odfjell highlighted its Q1 troubles, including a further $1.2m in legal fees and settlements for its troubled Rotterdam terminal. Odfjell Terminals Rotterdam (OTR) has been a black mark on the company since whistleblowers revealed unreported leaks of flammable materials and other critical safety issues at the terminal, leading to a full shut down in July 2012.

The company's performance in chemical tankers, where EBITDA was slightly down on Q1 2013 at $17m, came despite a market troubled by bad weather, congestion and delays. The Middle East and South America suffered from over tonnage, while fog dampened the US market where exports were strong.

The group's global tanker terminal business was again overshadowed by a poor performance at OTR. Its Rotterdam terminal aside, Odfjell reported 92% gross occupancy, commissioned its Charleston terminal and expanded capacities in Antwerp and in Houston. North America, Asia and the Middle East returned EBITDA of $3m, $3m and $2m respectively, with OTR sweeping it all away with an $8.8m negative EBITDA.

The group has initiated an efficiency and cost-cutting drive across its segments which will include improvements to its troubled Rotterdam terminal while reducing staff there by 100.

Odfjell has already seen stronger revenues for its chemical tankers in the second quarter, and maintains a positive outlook. "We expect the second quarter of 2014 to be better than the first quarter for the company's chemical tankers. With regard to terminals, with the exception of OTR, we expect continued stable results," the company stated in its earnings release.

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