Odfjell to Sell Rotterdam Terminals
Odfjell Terminals has announced its intention to sell its 100 percent ownership of Odfjell Terminals Rotterdam (OTR) and Odfjell Terminals Maritiem to Koole Terminals of the Netherlands for $155 million.
The intended transaction would reduce Odfjell Terminals' net debt by around $35 million. Odfjell SE's share of the proceeds is expected to amount to around $100 million and result in an estimated book loss for Odfjell SE of around $100 million.
"This is a landmark transaction for us,” said Kristian Mørch, CEO of Odfjell SE. “We have been working hard to restore profitability at OTR during the past years, and the terminal is now ready for the next step of development, which will require significant investments. We are therefore pleased to have Koole as the potential purchaser. Koole has great ambitions for the terminal, and we are confident in their ability to realize the value potential this business represents.”
Following a sale of OTR, Odfjell will have a network of seven tank terminals worldwide.
Odfjell recently extended its existing jetty to accommodate LR2 vessels with a maximum of 160,000 dwt. The Port of Rotterdam enabled the expansion by deepening the Nieuwe Waterweg and the third Petroleumhaven where Odfjell is located to a depth of approximately 15 meters. Odfjell and the Port of Rotterdam Authority are jointly investing in attracting additional transshipment and storage customers to the Port and further increasing its service level. Odfjell expects to use the renewed jetty in the last quarter of 2018.