13 August 2008 09:21 [Source: ICIS news]
LONDON (ICIS news)--Odfjell’s second-quarter net profits dropped 61% from the same period last year on the back of higher costs and a weaker US dollar, the Norwegian shipping firm said on Wednesday.
The net result of $26m (€17.4m) included capital gains of $7m in the second quarter this year, while last year’s net result of $66m included capital gains of $25m, said Odfjell.
Operating profits were halved to $42m from $84m in the second quarter 2007, while gross revenue rose 20% to $367m.
“Operating expenses as well as general and administrative expenses were higher in 2008 than in 2007, partly because of general price increases and a weaker US dollar,” said Odfjell.
Earnings before interest and tax (EBIT) for the parcel chemical tanker business was $47m in the first half 2008 compared with $108m during the year-ago period, as time-charter results expressed in US dollars/day declined by 9% year on year.
The tank terminal division reported operating profits $8m up at $35m in the first half 2008 compared with $27m last year, as the company continued expansions in Rotterdam, Singapore, Oman and Dalian, China.
“High bunker prices and high ship operating expenses, the latter partly explained by the weak US dollar, will continue to weigh on the parcel tanker industry, unless and until compensated for by higher freight rates,” said Odfjell.
“We do expect tank terminal results to remain stable, and see no major changes to the operating results within our shipping business for the rest of the year, unless there should be a significant move in bunker prices,” it added.
($1 = €0.67)
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