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.


ABB Generations 2025 publication on smartphone. ABB publishes 2025 maritime insights on decarbonization and digitalization  

Technology firm compiles annual articles exploring energy efficiency, automation, and alternative fuels for the shipping industry.

ClassNK AiP handover ceremony for bulk carrier design. ClassNK grants approval for multi-fuel ready bulk carrier design by Oshima Shipbuilding  

Vessel design accommodates future conversion to ammonia, methanol, or LNG with carbon capture capability.

The Arctic and black carbon graphic. Four countries propose Arctic fuel measure to cut black carbon from shipping  

Proposal to IMO's PPR 13 meeting aims to establish fuel regulations under MARPOL Annex VI.

T&E chart 1. Spain, Norway and Denmark lead Europe's green shipping fuel production, study finds  

Regulatory uncertainty prevents most e-fuel projects from progressing beyond the planning stage, says analysis.

Charles Simon Edwin, Dan-Bunkering. Dan-Bunkering appoints Charles Simon Edwin as operations and compliance manager in Singapore  

Edwin transitions from sourcing role, bringing experience from physical supply operations and bunker trading.

Hamburg Express vessel. Hapag-Lloyd wins ZEMBA's second tender for e-methanol deployment  

Container line to deploy e-methanol on trans-oceanic route from 2027, abating 120,000 tonnes CO₂e.

Nuclear-powered multi-role icebreaker design render. RINA grants approval for Chinese nuclear-powered Arctic icebreaker design  

CSSC's multi-role vessel combines cargo transport and polar tourism with molten salt reactor propulsion.

Glander International Bunkering logo. Glander International Bunkering seeks two bunker traders for Singapore office  

Firm recruiting traders with 3-5 years of experience to join team in key Asian hub.

Hiring concept with puzzle pieces. Malik Supply seeks bunker trader for Fredericia office  

Danish company advertises role focusing on client portfolio development and energy product trading.

Hiring concept with puzzle pieces and a magnifying glass. Chimbusco Pan Nation seeks credit analysts for Asia-Pacific and Middle East expansion  

Bunker firm recruiting for Hong Kong, Singapore, and Shanghai offices with APAC and MENA focus.


↑  Back to Top