Eitzen Chemical ASA (OSE: ECHEM) reported an average time charter equivalent rate of USD 11,076 per day in the 4th quarter, which represents an increase of 10.6 per cent from the previous quarter (Q3'14: USD 10,014 per day). The EBITDA for the 4th quarter was USD 6.9 million, compared to USD 4.3 million in the 3rd  quarter of 2014 (Q4'13: USD 9.4 million).
Report highlights:

  • On 22 December 2014, a significant milestone was achieved when Eitzen Chemical entered into a plan support agreement (the "PSA") with the majority of both its banks and bondholders and its largest shareholder to undertake a fundamental financial restructuring of the Company. The PSA was consummated on 27 January 2015 and resulted in the Company converting approximately USD 773 million of bank and bond debt into equity. USD 46 million of the debt has been repaid mainly with the proceeds from a new USD 100 million revolving credit and term loan facility, and USD 83 million under one of the bank facilities has been settled through a sale-leaseback agreement, involving three owned vessels in the Company's fleet. The debt leverage of the Company's balance sheet is currently one of the lowest in the industry. The asset base of the Company and its operating capabilities will enable it to explore and exploit opportunities in the market, including, but not limited to, new investments, mergers and acquisitions.

  • The Company has entered into a new financing agreement regarding a new revolving credit and term loan facility at attractive terms in an aggregate principal amount of USD 100 million, with an option to increase the aggregate principal amount to USD 150 million by inviting additional lenders to participate in the financing.

  • The Company will adopt a new name and relocate the parent company to Bermuda. While Eitzen Chemical is widely known in the industry and associated with quality and expertise, the name, trademark and logo do not belong to the Company. The new name, Team Tankers International, has a 50 year history and is the trade name for the operation of our MR fleet. The name reflects our core values, where team spirit, team effort and commitment stands out as key words.

  • In the 4th quarter of 2014, Eitzen Chemical experienced a firmer market and benefitted from lower bunker prices. The Company closed the year with improved rates and utilization in most of the trade lanes. Eitzen Chemical reported an average time charter equivalent rate (TCE) for the fleet of USD 11,076 per day. The average TCE increased by 10.6 per cent compared with the TCE of USD 10,014 per day in the 3rd quarter of 2014, and decreased by 5.3 per cent compared with the TCE of USD 11,701 per day for the 4th quarter of 2013.

  • Eitzen Chemical reported an EBITDA of USD 6.9 million for the 4th quarter of 2014, compared with USD 4.3 million in the 3rd quarter of 2014, and USD 9.4 million in the 4th quarter of 2013.

  • The Company recognized a net impairment loss of USD 74.3 million which aligns the current book value of the fleet to external valuations from independent ship brokers.

  • Eitzen Chemical expects a continuous improvement in the TCE rate in the 1st quarter of 2015.

  • In the 4th quarter of 2014, Eitzen Chemical redelivered the Siteam Jupiter (48,309 dwt, built 2000), the Siteam Neptun (48,309 dwt, built 2000), and the Chem Orion (10,307 dwt, built 1998) as the contracts expired. The Company also tendered notice for the redelivery of the Sichem Onomichi (13,104 dwt, built 2008), which will be redelivered in February 2015. All contracts were classified as operating leases.

  • On 14 January 2015, the Company held an extraordinary general meeting where the PSA and changes in the share capital were approved by the shareholders.

  • On 27 January 2015, the terms of the PSA were consummated.

  • On 30 January 2015, Team Tankers International Ltd., a wholly owned subsidiary of the Company registered in Bermuda, launched a voluntary exchange offer and an initial public offering on the Oslo Stock Exchange, where Team Tankers International Ltd. acquires all existing shares in the Company in exchange for shares in Team Tankers International Ltd.

  • On 10 February 2015, the Company declared the purchase option on the Sichem Ruby (8,823 dwt, built 2006), a vessel accounted for as an operating lease. The transaction is expected to be completed in April 2015.

For further information, please contact:


Jens Grønning

President and CEO

Phone: +45 3997 0300


Andreas Reklev

Chief Financial Officer

Phone: +47 9320 8886


This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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