Digging Out

Hindered by the financial crisis, Odfjell has been working on ways to strengthen its balance sheet, which was severely weakened by the retroactive tax imposed by the Norwegian government on participants in the original tonnage tax system. The company’s tax on the previously untaxed amount is approximately $213 million payable over 10 years. On a present value basis, this equates to $140 million which charge was taken against last year’s earnings.

As part of the recovery process, Odfjell today reported the sale of the M/T Bow Sky, a 40,005 DWT chemical tanker built in 2005 to nabCapital, the institutional banking and capital markets division of National Australia Bank Limited. The vessel will be bareboat chartered back for 11 years and continue to be employed in the Odfjell

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