Norway’s Eitzen Q3 net falls 30% on lower volumes

13 November 2008 06:49  [Source: ICIS news]

SINGAPORE (ICIS news)--Norwegian chemical tankers operator Eitzen Chemical announced a 30% drop in its third-quarter year-on-year net profits to $7.8m (€6.26m) from $11.3m as market conditions brought down trade volumes, the company said on Thursday.

Eitzen highlighted the difficulties faced by the oil and chemical trading companies in obtaining letters of credit to trade. This had an impact on the trading volumes due to weak market conditions.

Freight income on a time charter (T/C) basis was down 3% to $74m in the third quarter compared with $77m in the second quarter this year.

Going forward, Eitzen expects a weaker market in 2009, with slower growth in demand. Continued deliveries of newbuilds next year will put pressure on freight rates and market values.

Eitzen Chemical, listed on the Oslo Stock Exchange, is one of the largest chemical transportation companies with a fleet of 83 vessels and a freight income on T/C basis at $319m.

($1 = €0.80)

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By: Leon Toh
+65 6780 4359

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