Odfjell has reported further reductions in red ink in the second quarter as chemical tanker markets continue to improve.
The world’s third largest chemical tanker operator lost $10.1m for the April to June period against $120m a year ago and $15.4m in the preceding quarter.
Odfjell said the stronger result was driven by improved spot rates on main trade lanes and lower bunker costs.
Several vessels on time charters re-delivered during the first and second quarters were replaced by vessels at more favorable terms, also contributed to the improved ebitda this quarter, it said.
“We are pleased to report continued improvements in our results for the second quarter,” said chief executive Kristian Morch.
“The improvement in both spot and COA rates are still modest, but we continue to believe that we are in the early stage in the recovery of the chemical tanker market.
“We expect next quarter to be slightly affected by the seasonal slowdown in the chemical tanker market, but we still expect to report figures in line with the second quarter.”
Looking ahead, Odfjell said its preparations for the new 2020 sulfur requirements were "progressing according to plan".
"Renewed contracts are including new bunker adjustment clauses taking IMO 2020 into account," it said.
"Some contracts also include clauses where there is optionality to exit from the contract if an agreement on reference price can not be reached."
