Odfjell “Most Likely” to Cancel Five LPG Vessels

Image Courtesy: Odfjell

As the construction of its newbuildings continues to be substantially delayed, Bergen-based shipping and tank terminal company Odfjell SE said that it “will most likely” cancel the remaining five liquefied petroleum gas (LPG) carriers it has on order in China.

In late September, the company cancelled three of the newbuilding contracts. All instalments, including accrued interest, for the cancelled vessels have been refunded from the guarantor, according to Odfjell.

Instalments paid on the remaining orders are secured by refund guarantees from reputable financing institutions.

The company recently signed contracts for the construction of four 49,000 dwt stainless steel chemical tankers at China Shipbuilding Trading and Hudong-Zhonghua Shipbuilding.

The first newbuilding is expected to be delivered in June 2019 and the following vessels would join their owner with 3-month intervals.

Although the downward trend in freight rates continued through the third quarter with reduced spot rates in most markets, the company managed to soften the impact of the weaker market through contract nominations and efficient allocation of its fleet.

During the third quarter ended September 30, 2016, Odfjell’s net income stood at USD 16 million, up from USD 7 million seen in the same quarter a year earlier.

The company’s revenue for the period dropped to USD 240 million from USD 276 million reported in the same quarter of 2015.

“Our markets continue to be challenging, but we continue to see improvements in our competitiveness, which softens the impact on the Odfjell results. The sale of the Oman terminal at an attractive valuation shows some of the underlying value in our terminal business,” Kristian Mørch, CEO of Odfjell SE, said.

As the spot chemical market is under pressure and rates are still softening, while the CPP market continues to be depressed, Odfjell has forecast that its fourth quarter time charter result would be below the third quarter’s amid generally softer markets.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Mar 2017 >>
MTWTFSS
27 28 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

Breakbulk Europe 2017

For more than a decade, Breakbulk Europe has served as the networking hub for industry professionals who do business in Europe — or would like to! Exhibitors and sponsors include cargo owners, ocean carriers, freight forwarders, ports/terminals, heavy haulers, equipment companies and more that are involved in this specialized industry.

In addition to exceptional networking opportunities, Breakbulk Europe provides a dynamic conference, along with a range of educational and training workshops — intensive all-day classes held the day before the exhibition opens as well as many on-the-floor sessions.

  • Over 7,600 participants attended Breakbulk Europe 2016
  • Meet with over 400 exhibitors and sponsors
  • Hear from industry experts, including leading shippers, during the conference sessions
  • Learn new skills in the educational workshops held before the exhibition and on-the-floor micro-seminars and exhibitor-led sessions during the event

More info

read more >

Ferries Asia Summit

Propelling Regional Waterway Connectivity & Fleet-wide Operational Excellence

Ferry travel is in the limelight. The potential for driving tourism growth is immense – and for archipelago nations battling with urban congestion, ferry services pose a clean, efficient alternative in everyday public transport. But high-profile ferry accidents have brought ever greater attention to safety regulations for Asia’s maritime travel industry.

Amid these circumstances, how can vessel operators cope with ever-tightening safety requirements, while making the right decisions at the right time to capture rising demand? What are the smartest ways to improve service reliability and fleet quality, that maximize operating and capital spend? What are the industry’s best-practices for sustainable growth, and how can they be achieved?

Play your part! Join us at the Ferries Asia Summit 2017 to push forward the regional debate on making Asia’s ferry industry more progressive, safe, and commercially sustainable. Bringing together fast-ferry, RO-RO and ROPAX vessel owners along with international and domestic maritime regulators, classification agencies, shipbuilders and naval architects, this event connects the entire value chain for a meaningful holistic debate on ferry operations excellence in Asia.

WHAT’S ON THE AGENDA THIS YEAR?

Comprehensive debates on addressing the complexity of ferry safety in Asia: Is vessel age truly the greatest concern? How significant are other factors, and how can they be addressed?

Pathways to change through greater public-private collaboration

Contrasting viewpoints on the most effective ways to enhance operational stability & passenger management

Cost-efficient O&M strategies to extend vessel life & tips for stakeholder management to avoid purchasing mistakes

Integrating ferry business with tourism opportunities through strategic partnerships

Exciting formats including speed networking, panel discussions & a high-intensity fast-pitch ‘Shark Tank’!

For more information, click here to download the brochure.
If you would like to attend the event, register here before 3rd February to save USD 400.
Alternatively, email us at enquiry@iqpc.com.sg 
for any enquiries regarding the event.

More info

read more >

INMEX Vietnam 2017

The event is an exceptional meeting point for the global maritime community in Vietnam, a region where the industry remains buoyant and strong…

read more >

Singapore Maritime Week 2017

Singapore Maritime Week (SMW) is the leading maritime event in Singapore. Driven by the Maritime and Port Authority of Singapore (MPA), SMW…

read more >