[ID] => 10026
[post_author] => 34
[post_date] => 2018-08-27 10:06:33
[post_date_gmt] => 2018-08-27 09:06:33
[post_content] => The future shape of Odfjell Terminals is beginning to become clearer, with the sale of its Rotterdam facility going through and discussions ongoing over the divestment by Lindsay Golberg of its 49 per cent shareholding in Odfjell’s mainline terminal operations.
As was previously announced, Koole Terminals BV is to buy Odfjell Terminals (Rotterdam) in a deal that is expected to close before the end of the year. Odfjell will book around $100m from the sale, which has already received clearance from competition authorities.
Odfjell says it will use part of that cash to buy out Lindsay Goldberg’s share in Noord Natie Terminals, in which Odfjell Terminals owns 25 per cent; a price of $27m has been agreed.
Odfjell CEO Kristian Mørch says the two transactions will further strengthen Odfjell SE as a company. While the funds received from Koole for the Rotterdam terminal will help strengthen its balance sheet, “the planned increase in our shareholding in the joint-venture terminal in Antwerp [Noord Natie] will ensure a foothold in Europe, with Antwerp being the most important port for chemicals in the EU”.
Following the transactions, Odfjell Terminals BV will become a wholly owned holding company controlled by Odfjell SE. This will control 51 per cent of the terminals in the US and Asia as well as the 25 per cent share in Noord Natie. New investors are being lined up to take Lindsay Goldberg’s 49 per cent holding in the US and Asian terminals, with it likely that regional interests will be involved.
Odfjell sees these changes as being part of its strategy to focus on those terminals where it has operational control, with investments in four terminals having been sold since 2016, generating $344m in cash and $80m in book gains. “We remain fully committed to our tank terminal business and our focus going forward will be on growth and optimising of our existing portfolio,” says the company.
WHERE THE MONEY GOES
In the second quarter, Odfjell generated $25.9m of revenues from its tank terminal activities, up from $25.2m in the prior period but down on the $27.5m generated a year earlier. EBITDA came in at $8.9m, down from $10.3m in the second quarter of 2017 but ahead of the $6.3m achieved in the prior period.
The quarter-on-quarter increase was driven by better results in Rotterdam, following the one-month shutdown of the distillation unit in the first quarter, alongside strong demand for tankage in Houston. Average utilisation across the network improved by one percentage point to 86 per cent; excluding Rotterdam it rose from 90 per cent to 94 per cent.
The bottom line looks weak, however, as Odfjell has booked an impairment charge of $58m and a tax loss of $43m relating to the sale of the Rotterdam terminal; once the deal goes through, that will be covered by the anticipated $100m net gain.
Odfjell says it is not expecting any significant changes in the bulk liquids terminal sector in the second half of the year and forecasts that its results will be stable through to the end of 2018.
Construction of the second terminal in Santos, Brazil by Odfjell’s non-consolidated affiliate Granel Quimica is on track for completion by the middle of 2019. Capacity will be 51,910 m³, complementing the 97,720 m³ available at the first Santos site.
[post_title] => Odfjell: Trim the sales
[post_status] => publish
[comment_status] => open
[ping_status] => open
[post_name] => odfjell-trim-sales
[post_modified] => 2018-08-25 10:10:35
[post_modified_gmt] => 2018-08-25 09:10:35
[post_parent] => 0
[guid] => https://www.hcblive.com/?p=10026
[menu_order] => 0
[post_type] => post
[comment_count] => 0
[filter] => raw
Major changes at Odfjell Terminals are due to unwind by the end of 2018, putting it in a stronger position to contribute to its parent's finances