Odfjell LOI for Dual-Fuel Chemical Tanker Pair

Monday March 20, 2017

Odfjell SE (Odfjell) today announced that it has signed of a letter of intent (LOI) for two newbuild dual-fuel chemical tankers, set to be built by China's Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. (Hudong-Zhonghua Shipbuilding).

"Following this order and other commitments recently taken, most of our renewal needs for the 'super segregators' have been met," said Kristian Mørch, CEO of Odfjell.

The order for the two 38,000 DWT vessels, representing capital commitments will be about $116 million, follows orders already placed with the yard for four 49,000 DWT vessels.

Last month, Ship & Bunker reported that Odfjell said weaker financial results recorded for 2016's Q4 compared to 2016's Q3 were largely attributable to increased voyage expenses linked to higher bunker prices, as well as a decrease in contract nominations.