[ID] => 11409
[post_author] => 34
[post_date] => 2019-08-22 11:13:07
[post_date_gmt] => 2019-08-22 10:13:07
[post_content] => Improvements in the chemical tanker market have pushed up Odfjell’s financial results in the second quarter, with EBITDA up $10m over the first quarter at $57m, all of which came from Odfjell Tankers. Spot rates on the main trade lanes improved by 7% compared to the first quarter and COA renewals were up by 6%.
"We are pleased to report continued improvements in our results for the second quarter. The improvement in both spot and COA rates are still modest, but we continue to believe that we are at an early stage in the recovery of the chemical tanker market,” says Kristian Mørch, CEO of Odfjell SE. “We expect the next quarter to be slightly affected by seasonal slowdown in the chemical tanker market, but we still expect to report figures in line with the second quarter.”
The main drivers for the improvement in rates, Odfjell says, were strong US exports and “healthy volume development” throughout the quarter on main trades, tempered by a weakening CPP market that swung 20 coated MR tankers into chemicals and vegoils during the quarter. Odfjell expects this factor to weaken later in the year as the products markets gear up for IMO 2020 changes.
Odfjell is also concerned at increasing geopolitical tensions in the Middle East, which has already led to fewer spot cargoes being quoted in the market. On the upside, the start-up and increased utilisation of new liquid chemical facilities is progressing as forecast and the pace of new volumes coming on stream is expected to accelerate over the coming 12 months. That should result in chemical tanker demand growing at an average of 5% over the next two years, compared to projected annual fleet growth of 2%, signalling further upside potential for rates.
[post_title] => Chemical tanker market on upswing, says Odfjell
[post_status] => publish
[comment_status] => open
[ping_status] => open
[post_name] => chemical-tanker-market-upswing-says-odfjell
[post_modified] => 2019-08-22 11:13:07
[post_modified_gmt] => 2019-08-22 10:13:07
[post_parent] => 0
[guid] => https://www.hcblive.com/?p=11409
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