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 

Molgas Energy logo. Molgas completes acquisition of Prima LNG’s Irish business  

Molgas takes over Prima LNG’s Irish customer portfolio, including a Mondelez manufacturing site, as part of its expansion.

Levante LNG vessel. Peninsula marks three years of LNG bunkering with Levante LNG  

Bunker supplier reports zero claims and CO₂e cuts as LNG bunker vessel completes three years of operations.

Sea Leader FZCO logo. Sea Leader begins physical bunker supply operations in eastern India  

Company completes first bunker delivery after registering with India's shipping authority.

Wega and Deneb vessels render. Auramarine to supply methanol fuel systems for German hydrographic research vessels  

Finnish firm signs deal with Gondan Shipbuilders to equip two new vessels for Germany's maritime agency.

Mitsui-Everllence B&W 6S50ME engine render. Mitsui E&S secures first order for dual-fuel engines from Indian shipyard  

Six LNG-fuelled engines will power chemical tankers built by Swan Defence and Heavy Industries in Gujarat, India.

Jamaica bunkering hub study presentation. Study maps route for Jamaica to become regional hub for alternative marine fuels  

Research identifies Jamaica's location, port traffic and existing LNG infrastructure as foundations for a regional alternative marine fuels hub.

A2B Progress vessel. A2B-online orders two more methanol-fuelled vessels for shortsea network  

Dutch shortsea operator expands newbuild series to four ships, adding methanol propulsion and battery capacity for emission-free port calls.

Höegh Autoliners and BYD Energy Storage cooperation agreement signing. Höegh Autoliners signs battery deal with BYD for ammonia-ready car carrier  

Ro-ro shipper teams up with BYD Energy Storage to combine batteries, solar power and ammonia-ready propulsion on a single car carrier.

Hercules Angelica vessel. Hercules Tanker Management adds new Ultra-Spec tanker to fleet with FAME cargo run  

Hercules Angelica begins maiden voyage carrying FAME from Malaysia to the UK/ARA region.

SHI and Morimura sign MoU. Samsung Heavy Industries and Japan's Morimura to jointly develop solid oxide fuel cells for ships  

Companies target 2028 commercialisation of SOFC technology for merchant vessels and floating data centres.


↑  Back to Top