Odfjell looks to change structure of storage terminal division

Odfjell is seeking to change its terminal division to a more flexible structure as part of the Lindsay Goldberg transaction.

In a capital markets day presentation, the company, which operates eight terminals globally as well as a terminal network in South America, said it is committed to owning and operating terminals in the long-term.

It said that while it is not in ‘exit mode’ it will consider a ‘tag along’ in Rotterdam due to:

  • Fundamental turnabout of terminals is completed
  • Rebuilding the terminal to its full potential will require substantial investments
  • Replacing Lindsay Goldberg with a new J/V partner will likely accelerate the capex need
  • The terminal is mainly mineral oil focused, and Antwerp is consolidating as the chemical hub.

However, if the Rotterdam terminal is not sold, the company has said it will follow the plan to rebuild as long-term owners and that tangible synergies exist, and some remain untapped.

As previously reported, Lindsay Goldberg plans to sell its 49% shareholding in Odfjell Terminals.

As part of the transaction, Odfjell SE is looking to change its terminal division. Under the future structure, Odfjell SE would control the management company and Odfjell Terminals will become an operational platform.

This new structure would give flexibility to pursue growth projects with other new partners, make it easier to achieve synergies with Odfjell Tankers and make governance easier.

Anthony Webb