ODFJELL REPORTS WEAKER 2009

[proud_ionian]

Source: MGN

NORWEGIAN-based parcel tanker and liquid terminal operator Odfjell made a Q4 net pre-tax profit of US$62m, compared to US$10m in Q4 2007. The 2008 figure includes bonuses of $4m and capital gains of $43m, while the 2007 result included bonuses of $11m. Full-year figures are a pre-tax profit of $146m, including capital gains of $53m, compared to $143m in 2007, including capital gains of $25m.

The company notes that operating expenses as well as general and administrative expenses were higher than in 2007, partly because of general price increases, as well as a weak USD for a large part of the year. Full-year EBITDA the company's parcel parcel tankers was $191m compared to $242m in 2007. The operating result (EBIT) was $129m for 2008, compared to $150m the preceding year.

The company comments: “2008 became an “annus horribilis” in respect of the financial sector, world economic growth and for many shipping sectors. We have seen extreme volatility in a wide range of markets and we expect this to continue during 2009. The current recession many economies are experiencing, is following the biggest liquidity boom the global economy has ever witnessed. After the biggest party, one can only expect the biggest hangover. In a shipping context, whilst large tankers and bulk carriers the last few years enjoyed boom times, our parcel tankers have comparatively done relatively poorly during this same period. Not unusual in down markets, we expect however doing relatively better than most shipping segments now going forward. This is because the diversity of trade lanes and the products we transport provide some natural hedging against the negative effects of a general slowdown in demand. On the other hand, we cannot expect that our business will be immune to the crisis, and the short term effects are difficult to assess as we seem to be navigating in “uncharted waters”. It concludes: “Overall we are preparing for 2009 being a challenging year, with weaker operating results than in 2008.”