WHILE Norwegian shipping group Camillo Eitzen reports Q1 EBITDA of US$26.7m, up from $20.7m in Q4 2008 it has suffered from the global dip in freight rates and reports freight income on time charter basis of $152.0m for Q1, down from $203.2m last quarter. The decrease reflects lower freight revenue for Eitzen Bulk and Eitzen Chemical. The company noted that, although it seen improvements in EBITDA from Eitzen Gas and Eitzen Bulk, the results from the shipping segments were “still unsatisfactory”, while shipping services company EMS delivered “satisfactory results”.
Camillo Eitzen says it expects the challenging markets to continue for the remaining of 2009. It has initiated an Action Plan with the aim to reach an agreement with the lenders and to improve the cash flow and liquidity going forward. The company says: “Important milestones have been achieved during the 1st quarter as newbuilding commitments for both Eitzen Gas and Eitzen Chemical have been cancelled. CECO will continue to have focus and strive towards implementing the [company's] Action Plan.”