Odfjell partially restarts Rotterdam terminal

Odfjell partially restarts Rotterdam terminal

7:12 AM, 1st October 2012
Odfjell partially restarts Rotterdam terminal

BERGEN, NORWAY: A decision was made by Odfjell Terminals Rotterdam (OTR), on 27July, 2012 to carry out a temporary shutdown to initiate immediate safety upgrades. The terminal has successfully restarted and is currently operating at about 20 per cent of its capacity. Management expects to gradually restart the majority of the remaining capacity within the next six months.

Odfjell SE partly owns 12 tank terminals globally, of which (OTR), is the largest. Odfjell SE owns 51 per cent of OTR. OTR is working closely with key stakeholders to resolve the issues at the terminal. OTR has initiated several cost cutting initiatives and is in the process of ‘preparing’ a plan to reduce the work force to match the reduced activities at the terminal. The situation at OTR will negatively impact results of the tank terminal activities for the remainder of the year.

OTR expects an operating loss (EBITDA) of $ 25 to 30 million in the second half of 2012, compared to a marginally positive EBITDA in the first half of the year. The estimates for second half of 2012 include provisions for customer claims and other expected costs. These figures are based on Odfjell’s 51 per cent share in OTR.

Since 2010, OTR has had a 5 year plan in place to execute the necessary safety improvements of its technical installations and tank pits. This investment programme has now been accelerated and increased by an estimated 30 per cent. $100-133 million (Odfjell share) has been allocated for this; the range being subject to future scope of replacements. The company also expects continued weak results for the chemical tankers.

© WOC News



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