EMEA News
Bunker Hedge Drags Down Odfjell Bottom Line
Norweign bulk liquid shipper Odfjell has reported that in 2015 it suffered a loss of $64.3 million on bunker hedging contracts, which dragged down its full year result to a loss of $36 million.
It was nevertheless an improvement on the $75 million loss in 2014.
On the plus side for bunkers, Odfjell said fuel efficiency initiatives continue to be implemented, and its average fuel savings for converted ships is above 20 percent.
"As volatility remains high in most markets with no clear direction, traders are cautious, and volumes are reduced. We benefit from the continued fall in bunker prices, but will be negatively affected by the bunker adjustment clauses in our freight contracts," the company said.
Looking at the year ahead, the company noted its "expensive bunker hedging" expired in December 2015, but that "global growth prospect is uncertain."
In May 2015 Ship & Bunker reported that Odfjell faced problems in its bunker derivative portfolio.
