Odfjell posts $32m loss as bunker hedges biteOdfjell posts $32m loss as bunker hedges bite

Revenues of $229m in the chemical tanker arm produced an EBITDA of $26m, and an EBIT of $4m, but the sector accounted for the lion's share of a $37m net loss on finance.

Utilisation at Odfjell Gas rose slightly, to a level expected to hold through to the next quarter. Odfjell's share from its 50% stake in the joint venture was $4m in revenue and a $1m EBIT.

Bunker hedging derivatives had a negative effect of $15m in the first quarter, with unrealised losses on bunker hedging derivatives for the remainder of 2015 booked in the equity in the balance sheet totaling $42m. The derivative losses on the reduced bunker price since the hedges were made in the third quarter last year were worsened by the weaker Norwegian Krone.

Refinancing of mortgage loans maturing in 2015 is "on track" and the company expects completion within the second quarter.

"We expect second quarter 2015 to improve from first quarter for our chemical tankers on a further reduced cost base and improved earnings," the company stated in its earnings release. "With regard to our terminals, we expect increased earnings due to capacity expansions and continued positive development at Odfjell Terminals (Rotterdam)."