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Eitzen Chemical ASA (OSL:ECHEM) Eitzen Chemical ASA (OSE: ECHEM) reports 15% improved EBITDA for the 2nd quarter of 2008, compared to the previous, with an EBITDA of USD 36.6 million vs. USD 31.8 million in the 1st quarter of 2008.
The 2nd quarter market rates for the Eitzen Chemical fleet below 25,000 dwt were up by 4.6% compared to the level in the previous quarter, while the vessels above 25,000 dwt reported average rate decreases of 5.5% compared to the level in the 1st quarter.
Net profit for the quarter was USD 2.5 million compared to a net loss of USD 12.6 million in the previous quarter.
The Company has taken delivery of seven newbuildings year to date in 2008, and expect to take delivery of another nine newbuildings for the remaining of the year. The vessels are being delivered from five different yards and the newbuilding program is progressing satisfactory and according to plan.
Terje Askvig, CEO said: "We are pleased to report a steady increase in EBITDA for the 2nd quarter. The improved result is due to higher earnings in the segments below 25,000 dwt, as a consequence of improved contract freight rates and operational efficiency. The execution of the strategy to sell some vessels has also contributed. We are aiming to further improve the earnings through enhancing the operation and through the fleet expansion program. Furthermore, we expect improved earnings in the segment above 25,000 dwt as the phase out of the older vessels with less earnings power is executed."
Eitzen Chemical is an industrial carrier of petrochemical cargos and operated a fleet of 80 vessels at the beginning of the 3rd quarter of 2008, whereof 64 vessels are owned and 16 vessels are operated for partners. The Company has 23 newbuildings on order, bringing the total fleet to 103 vessels.
