Odfjell Exits European Short Sea Market

Bow Bracaria. Photo: Odfjell SE
Bow Bracaria. Photo: Odfjell SE

 

Norway-based chemical tanker owner Odfjell SE has exited the European regional trade with the sale of three vessels to an unnamed buyer.

In a statement posted to its website, Odfjell said that it has signed an agreement for the sale of Bow Balearia, Bow Bracaria and Bow Brasilia, all 5,800 dwt and built in 1997-1998, marking the last remaining vessels within the company’s trade in the European short sea market.

The company says the divestment is part of a cost-cutting and efficiency program, which includes exiting from unprofitable trades.

Odfjell added that while the sale of the vessels will result in an accounting loss, it will have a positive effect on the group’s overall liquidity and profitability.

Odfjell initiated the cost-cutting program in February, estimating that when fully implemented the restructuring would improve net results by more than $100 million per year by end 2016. In its Q1 2015 results, Odfjell said it was already seeing a positive effect from the program, with headcount reductions and other cost-cutting initiatives progressing as planned. The company did say that implementation of market initiatives related to fleet optimization and other improvement measures will take longer than first planned.