Eitzen Chemical ASA (OSE: ECHEM) reported an average time charter equivalent rate of USD 10,014 per day in the 3rd quarter, which represents a decrease of 2.6 per cent from the previous quarter (Q2'14: USD 10,284 per day). The EBITDA for the 3rd quarter was USD 4.3 million, compared to USD 4.8 million in the 2nd  quarter of 2014 (Q3'13: USD 10.0 million).

Report highlights:

· Eitzen Chemical is progressing with its ongoing and constructive dialogue with the main creditors of the Company's long-term debt to explore alternatives in order to strengthen the balance sheet. A financial restructuring of the Company will likely include a significant debt to equity conversion and new financing. Eitzen Chemical is of the opinion that with a stronger balance sheet, the Company can create more value over time for all present stakeholders. Eitzen Chemical is still significantly overleveraged with a negative book equity value of USD 181.3 million.

· The activity remained slow through the seasonal weaker 3rd quarter. Eitzen Chemical reported an average time charter equivalent rate (TCE) for the fleet of USD 10,014 per day. The average TCE decreased by 2.6 per cent compared to the TCE of USD 10,284 per day in the 2nd quarter of 2014, and decreased by 10.8 per cent compared to the TCE of USD 11,231 per day for the 3rd quarter of 2013.

· Eitzen Chemical reported EBITDA of USD 4.3 million for the 3rd quarter of 2014, compared to USD 4.8 million in the 2nd quarter of 2014, and USD 10.0 million in the 3rd quarter of 2013.

· Eitzen Chemical expects a modest improvement in the TCE rate in the 4th quarter of 2014, although the overall market conditions are expected to remain challenging.

· In the 3rd quarter of 2014, Eitzen Chemical agreed to sell the Sichem Casablanca (6,999 dwt, built 1993). The vessel was delivered to new owners in October 2014. Eitzen Chemical has recognized an impairment of USD 1.5 million in the quarter, reflecting that the net sales proceeds was below the book value of the vessel. The vessel is classified as held for sale as of 30 September 2014.

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