ANTITRUST SETTLEMENTS HIT ODFJELL

[proud_ionian]

Source: MGN

PROVISIONS for customer settlements relating to an ongoing antitrust issue, of US$5m and a reversal of deferred tax liabilities of US$12m following a corporate restructuring hit the Norwegian parcel tanker owner Odfjell’s Q3 results.

The net result was US$23m, compared to US$29m in Q3 last year. The first nine months 2007 consolidated net result after tax was however up, at US$124m compared to US$ 90m in the first nine months of 2006. EBITDA for the first nine months of 2007 was US$252m, compared to US$192m in the first nine months of last year.

The company notes: “Operating expenses as well as general and administrative expenses so far were higher than in 2006, partly because of general price increases and a weaker US$.”

Odfjell says the new tax system proposed by the Norwegian Government will cause a large tax cost in Q4 and will “reduce our investment capacity and our competitiveness relative to our main competitors, operating under international tax regimes”.

Odfjell comments: “Having entered the current shipping tax system in 1996, on the expectation of continuity and stability, we regret to experience that the Norwegian Government - - perhaps even non-constitutionally, now tries to punish the shipping industry by such, and long retroactive, backdated legislation.”

Looking ahead the company observes: “Continued strong growth in world economies is being threatened by high volatility in the commodity markets and in particular energy prices. In addition to this, a debt liquidity crises brought on by issues related to the US sub prime mortgage problems has severely affected many financial institutions. The possible effect that this may have on our freight market is uncertain and we are cautious as a result.”