This is a legacy page. Please click here to view the latest version.
Fri 16 Feb 2018, 10:25 GMT

Odfjell posts rise in FY and Q4 2017 bunker costs


Average bunker cost per tonne was up 10.6% in 2017.



Shipping company and terminal operator Odfjell reports that its average bunker cost per tonne (including the effect from bunker adjustment clauses) during the whole of 2017 was $387, representing a year-on-year (YoY) increase of $37, or 10.6 percent, on the previous year's figure of $350 per tonne.

Odfjell posted full-year net bunker costs of $152.8 million, which included $142.2 million in bunker purchases, with the rest comprising costs associated with fuel hedging and bunker clauses.

2017 bunker cost summary

Q1:
Total net bunker cost: $38.6m
Bunker purchases: $35.8m

Q2:
Total net bunker cost: $37.3m
Bunker purchases: $34.3m

Q3:
Total net bunker cost: $37.8m
Bunker purchases: $34.1m

Q4:
Total net bunker cost: $39.1m
Bunker purchases: $38.0m

Fourth-quarter bunker costs

Odfjell reported fourth-quarter (Q4) net bunker costs of $39.1 million, including $38.0 million in bunker purchases - a YoY rise of $5 million, or 14.7 percent.

In a sequential, quarter-on-quarter (QoQ) comparison, the figure was up $1.3 million, or 3.4 percent.

Fourth-quarter bunker averages

The average bunker price paid by Odfjell's chemical tankers in Q4 was up compared to the previous three-month period.

On average, the Norwegian firm says its chemical tanker fleet paid $347 per tonne in Q4, which was $13, or 3.9 percent, higher sequentially.

Odfjell's average bunker cost of $398 per tonne (including the effect from bunker adjustment clauses) in Q4 represents an increase of $56, or 16.4 percent, YoY.

In a sequential comparison with Q3, the mean bunker cost was up $15, or 3.9 percent.

Hedging

On the issue of risk, Odfjell said bunker clauses in contracts of affreightment (COAs) cover around 64 percent of its marine fuel exposure.

Key financial results

In its overall results, Odfjell posted a full-year (FY) net income of 82.7 million - 17.3 percent below the $100 million profit achieved in 2016.

In Q4, Odfjell managed to more than double net income to $96.4 million, compared to $43.5 million during the prior-year period. The positive result follows two consecutive quarterly losses of $4.7 million and $10.5 million in Q2 and Q3 respectively.

Commenting on the company's performance, Kristian Morch, CEO of Odfjell SE, remarked: "Our markets have remained challenging in 4Q, but Odfjell continues to make good progress. We have recently achieved our growth ambitions by renewing our fleet and participating in the consolidation in a capital efficient way, and we have at the same time strengthened our balance sheet through disposal of non-core assets."

Odfjell said: "We expect the challenging markets to continue into 2018, but we also expect that 2018 will be a turning point due to improving fundamentals."

The company added that it expects Q1 2018 time charter results to be "marginally better" than in Q4 2017, and Odfjell Terminals results in 2018 to be in line with 2017, but without the contribution from the divested Singapore terminal.

Norway 

Delivery ceremony of Maran Myrto vessel. New Times Shipbuilding cuts steel on two crude tankers and delivers LNG dual-fuel vessel  

Chinese yard marks a busy 4 June with steel-cutting ceremonies and a tanker delivery to Maran.

Christening ceremony of Mercedes Pinto vessel. Baleària Canarias christens €128m dual-fuel fast ferry Mercedes Pinto for inter-island routes  

The catamaran will connect Tenerife, Gran Canaria and Fuerteventura with six daily departures.

AiP award ceremony for LPG dual-fuel 1,400-teu container vessel design. DNV awards AiP to HHI for LPG dual-fuel container vessel design  

Approval in principle granted for ship design targeting the underserved smaller container segment.

Olivier Josse, Alberto Pérez Espinosa and Luke Shu. Seascale Energy partners with Lloyd’s Register Advisory to build decarbonisation expertise  

The bunker firm has launched a knowledge partnership covering low-carbon fuels and maritime regulations.

CSL Kuleana vessel. CSL takes delivery of methanol-ready Kamsarmax as fleet renewal programme advances  

MV CSL Kuleana departs on maiden voyage, equipped with Tier III engines.

Peter Keller, SEA-LNG. LNG orderbook share hits 90% as methane pathway investment holds firm  

LNG bunkering volumes surge and biomethane uptake grows six-fold, despite geopolitical headwinds.

Vessel at sea with Graphyte and NYK Line logos. NYK to offset ship emissions with CDR credits from Loblolly project  

Japanese shipping group turns to biomass-based carbon sequestration to address residual maritime emissions.

Close-up view of a KESS vessel. K Line orders four LNG dual-fuel car carriers for European short-sea operations  

Kawasaki Kisen Kaisha contracts quartet of 1,380-vehicle vessels at China Merchants Jinling Shipyard.

Bunge logo. Bunge seeks bunker purchaser for Rotterdam operation  

Agribusiness is looking for candidates with experience in marine fuel procurement.

Launching ceremony of a 38,000-dwt chemical tanker with hull no. XY169. First vessel in NYK Stolt Tankers’ newbuild series launched in China  

FKAB-designed 38,000 DWT chemical tanker launched at Nantong Xiangyu Shipyard, China.


↑  Back to Top