The second quarter of 2013 turned out better than expected due to better fleet utilization and a somewhat better chemical tanker market. Odfjell experienced steady nomination of contract cargoes and improved spot rates. Earnings on a time-charter basis ended up 8% compared to the previous quarter, and the average freight rate per tonne shipped increased by 2%, said in the company's press release.
In second quarter Odfjell 51% shareholding in tank terminals business contributed an EBITDA of USD 7 million, compared to USD 9 million in the previous quarter.
In June Odfjell concluded the transaction with Lindsay Goldberg to expand Odfjell existing partnership to include substantially all tank terminal assets. Several new tank terminal projects are being developed in China, USA and Europe. In June Odfjell signed an agreement to enter into a joint venture with the Founder Group to become 50/50 partners for the development of a petrochemical tank terminal in Quanzhou, Fujian Province, China. In August Odfjell signed a Letter of Intent to purchase Chem-Marine Corporation in South Carolina, USA. Chem-Marine controls a 10.2 hectare site and is located adjacent to Odfjell tank terminal currently under construction in Charleston, South Carolina.
Chinese growth is at a somewhat lower level than expected, and is poised for the weakest expansion since 1990. Key Euro zone statistics have favourably surprised the markets in the past quarter. The development of the US shale gas industry is providing cheaper energy and feedstock for the US chemical industry.
Based on the above macro-economic picture, and the fact that there are no material changes to the supply/demand situation, Odfjell believes that the next 12 to 24 months Odfjell see an improvement in chemical tanker segments.
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