Rotterdam terminal issues drag Odfjell to $108m annual loss

The poor quarter brings the year net loss to $108m.

Odfjell Terminals Rotterdam's (OTR) EBITDA was $9.1m including $1.9m in one-off legal fees and fines. OTR has been the subject of ongoing concern with regards to safety; unreported leaks of large quantities of flammable material have been revealed by whistleblowers, inspections uncovered malfunctioning cooling and fire suppression systems, and maintenance backlogs on critical safety equipment. The terminal shut itself down in July 2012 to address its safety concerns.

OTR's $76m impairment relates to expected reductions in capacity and throughput at the terminal as well as certain assets, including customer relations and goodwill.

The company's chemical tanker segment suffered a minor drop in revenue for the quarter and the full year, to $258m and $1bn respectively. Poor weather increased bunker consumption and caused delays in the quarter, as US and European exports balance a drop out of Asia and Middle East.

On an EBIT basis, fourth quarter and full year losses in 2012 of $19m and $35m were improved, with a $6m loss in Q4 2013 and a full year positive EBIT of $3m.

Forecasting a steady increase in demand for its services, Odfjell commented, "We expect the first quarter of 2014 to be similar to or slightly better than the fourth quarter for the company's chemical tankers. With regard to terminals, with the exception of OTR, we expect continued stable results."