OSLO, June 5 (Reuters)– Chemical vessel company Odfjell sees substantial upside possible to its revenues in advance as low-yielding agreements end, brand-new vessels are generated and also market prices for moving chemicals recuperates, it stated onTuesday

In complete, 18 of Odfjell’s ships come off time-charter (TC) agreements this year, out of a fleet of 83 vessels.

“We still have a positive margin on our TC vessels but some years ago we had a contribution of $40 million-$50 million … Today there isn’t much value in these TC contracts,” Chief Financial Officer Terje Iversen informed financiers on Tuesday.

“We are not in a rush to renew these contracts, we could live without these vessels,” he included.

In a high-case circumstance, Odfjell approximated a yearly favorable effect on revenues prior to rate of interest, tax obligation, devaluation and also amortisation (EBITDA) of $15 million if the vessels agreements are restored.

A mid-level circumstance would certainly offer an increase of $9 million.

Odfjell results from take distribution of 11 newbuildings this year and also following with considerably reduced operating expense than its older vessels, the chief executive officer included.

On leading this, Iversen anticipates a slowly healing of the chemical vessel market.

At 0920 GMT, Odfjell’s shares traded 12 percent greater for the day at 34.2 Norwegian crowns. It earlier struck a four-year high of 37.2 crowns. (Reporting by Ole Petter Skonnord, editing and enhancing by Terje Solsvik)

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