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Odfjell Inks Charter Deals for New Chemical Tankers

Odfjell Inks Charter Deals for New Chemical Tankers
Norwegian shipping and tank terminal company Odfjell SE has entered into long term charter agreements for two new advanced chemical tankers.

The 35,500 dwt tankers, which will feature 28 stainless steel cargo tanks, will be constructed in the Japanese Shin-Kirushima dockyard.

Ordered by a Japanese owner against a long term charter to Odfjell, the new ships are scheduled for delivery in the fourth quarter of 2018 and the first quarter of 2019.

The tankers were chartered out for a minimum period of eight years.

“We are very satisfied with this agreement which will add high quality assets to our fleet,” Kristian Mørch, CEO of Odfjell SE, said.

“It will increase Odfjell’s trading efficiency and flexibility towards our customers and ensure that we can continue to offer first class service going forward,” Mørch added.

Odfjell said that the deal is in line with the company’s new strategy, the “Odfjell Compass”, launched in February, where the company announced its targets for tonnage renewal and fleet growth.

The new strategy targets an operated fleet of about 100 vessels, average long-term revenue growth of 10% per year, industry-leading EBITDA margin and zero incidents.

In 2016, Odfjell returned to profit as it posted a net income of USD 100 million, compared to a net loss of USD 36 million in 2015.

In the fourth quarter of 2016, the company delivered a net income of USD 43 million, against a net loss of USD 18 million in the same period last year.

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