Odfjell Exits European Short Sea Market

Norway-based chemical tanker proprietor Odfjell SE has exited the European regional commerce with the sale of three vessels to an unnamed purchaser.

In an announcement posted to its web site, Odfjell stated that it has signed an settlement for the sale of Bow Balearia, Bow Bracaria and Bow Brasilia, all 5,800 dwt and inbuilt 1997-1998, marking the final remaining vessels throughout the firm’s commerce within the European brief sea market.

The firm says the divestment is a part of a cost-cutting and effectivity program, which incorporates exiting from unprofitable trades.

Odfjell added that whereas the sale of the vessels will lead to an accounting loss, it can have a optimistic impact on the group’s total liquidity and profitability.

Odfjell initiated the cost-cutting program in February, estimating that when absolutely applied the restructuring would enhance internet outcomes by greater than $100 million per 12 months by finish 2016. In its Q1 2015 outcomes, Odfjell stated it was already seeing a optimistic impact from this system, with headcount reductions and different cost-cutting initiatives progressing as deliberate. The firm did say that implementation of market initiatives associated to fleet optimization and different enchancment measures will take longer than first deliberate.