28 October 2009 08:38 [Source: ICIS news]
SINGAPORE (ICIS news)--Norwegian chemical shipping company Odfjell said on Wednesday that it swung to a $6m (€4.1m) net loss in the third quarter from a $41m profit in the same period of 2008, as revenue slumped 19.3% year on year.
Revenue for the September quarter 2009 stood at $321m, compared to $398m in the previous corresponding period, with earnings before interests and tax (EBIT) shrinking to $10m from $52m.
For the first nine months of the year, Odfjell reported a net loss of $3m, compared to a profit of $82m made in the same period in 2008, as sales fell 15.8% to $945m, Odjfell said.
EBIT for the January-to-September period fell 69.4% to $41m.
“With an oversupply of chemical tankers, higher bunker prices and a devaluing dollar, we find it difficult to predict much improvement in the short term,” the company said.
“We will continue to cut costs and scale back wherever logical and possible,” it added.
Odfjell said it expected supply and demand conditions in the shipping industry to improve next year as vessels are recycled and ships on order cancelled.
“Thanks also to additional terminalling capacity coming on stream, year 2010 will likely become better, helping along a positive overall company bottom line,” the Norwegian firm added.
($1 = €0.68)
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