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 

Uni-Fuels Logo. Uni-Fuels advertises for senior bunker trader in Dubai  

Nasdaq-listed firm recruiting for its trading team as it aims to drive growth.

Mineral Europa vessel. Green ammonia bunkered to ammonia-powered bulk carrier in Australian first  

Pilbara Ports, Fortescue and CMB.Tech complete a ship-to-ship ammonia transfer at Port Hedland, supporting plans for a clean fuel bunkering hub in the region.

Sea Change II vessel render. US Coast Guard agrees design framework for hydrogen-fuelled New York ferry  

Switch Maritime and Incat Crowther reach regulatory agreement for a 150-passenger hydrogen fuel cell-electric fast ferry intended for New York's waterways.

Auto Advance vessel. UECC fits WE Tech hybrid power systems on newbuild ro-ro vessels  

Norwegian short-sea operator says battery and shaft generator technology from WE Tech Solutions has cut fuel use and auxiliary engine reliance on three newbuilds.

Terra Clove vessel. Envision's green ammonia used to bunker world's first VLAC  

Chinese energy group supplies vessel owned by Eastern Pacific Shipping as it links production and marine fuel supply chains.

Asia Energy vessel. Wärtsilä converts LNG carrier engines to cut methane slip for Chevron  

Three Chevron-operated LNG carriers have each had one engine converted from dual-fuel to spark gas operation to reduce methane emissions.

Tokyo skyline. Cosulich Marine Energy opens Tokyo office to deepen Japanese market ties  

Fratelli Cosulich's bunker trading arm expands into Japan, building on its 2025 South Korea entry.

TotalEnergies sign outside an office building. TotalEnergies secures five-year LNG supply deal with ADNOC Gas  

Agreement will see ADNOC Gas deliver up to 1.6 million tonnes of LNG to TotalEnergies, with first deliveries expected this year.

Shell flag. Shell seeks senior fuel oil trader to expand Singapore paper trading desk  

Shell is hiring a senior fuel oil trader in Singapore to build proprietary HSFO strategies and expand bunker market relationships.

Frisian Sea vessel. Econowind seeks area sales manager to expand wind-propulsion reach  

Dutch wind-assisted propulsion specialist is recruiting an area sales manager to grow its market presence across a designated geographic region.


↑  Back to Top