Eitzen Chemical sees stronger market in 2011

Chemical tanker operator Eitzen Chemical sees an improving market in 2011. Releasing its results for Q4 2010, the 82 vessel strong company reported  EBITDA excluding capital gains of USD 4.9 million for the 4th quarter of 2010, compared to USD 10.7 million in the previous quarter and minus USD 5.3 million in the comparable quarter last year. For the full year 2010, the EBITDA excluding gains was USD 27.1 million vs. USD 38.9 million the year before.
According to the company, the average time-charter rate for the fleet decreased by 9.7 % from Q3 2010 due to increased bunker fuel expenses and a temporary slowdown in activity on certain trade lanes. Compared to Q4 2009, the average time-charter rate was up 2 %.

Terje Askvig, CEO of Eitzen Chemical, said: "The Company sees a firmer market for the 1st quarter, and to date time-charter rates in the 1st quarter are up about 8-10 % compared to the last quarter. Furthermore, the Company believes in an improving market and a positive trend through 2011. The net supply and demand balance for chemical tankers started to improve last year, a trend that is likely to continue with the rapidly decreasing orderbook. When the remaining oversupply has been absorbed, we will experience an increase in the global fleet utilization rate and the chemical tanker market should see a significant recovery, both in rates and second hand values."