Odfjell makes thin profit of $2m in first quarter

The tanker shipowner made a thin profit of $2m in the quarter ended 31 March 2017 compared to the gain of $24m in the same period of last year.

Revenue for the first three months came up to $243m, 2.4% lower compared to $249m in the previous corresponding period.

“We expect 2017 to remain challenging, but our underlying operational performance is stable. Over the past two quarters we have taken crucial steps in renewing our core fleet at a very low point in the price cycle,” said Kristian Mørch, ceo of Odfjell.

The company’s fleet renewal programme for its large stainless steel chemical tankers is nearly completed, with disposals of four vessels and additions of seven vessels during the period from January to May this year.

For its tank terminals business, Odfjell is considering divesting non-operated terminals and has initiated a process to explore the sale of its shares in the Singapore terminal which is a joint venture between Oiltanking and Odfjell Terminals.

In a long term perspective, Odfjell sees a fairly balanced market heading towards gradual improvement, though the markets for both chemical tanks and terminals are expected to remain tough in 2017.