Eitzen Chemical still losing cash

Eitzen Chemical reports a net loss of $154.0m for 2011, worse than the $113.8m recorded a year earlier. Freight income improved slightly to $200.6m for the year and the company says that timecharter rates increased during the fourth quarter, although freight income for the latest period, at $48.9m, was down on the $50.3m reported in the third quarter. EBITDA was positive for the year but depreciation, interest charges and a $62.5m impairment charge pushed the bottom line deep into the red.

Eitzen Chemical expects the market to remain "challenging" in the near term. It has engaged ABG Sundal Collier to advise on long-term financial arrangements and has already announced its withdrawal from pool operations. A new management team has been put in place, with Per Sylvester Jensen promoted to president/CEO and Andreas Reklev taking the position of CFO.

Eitzen expects the medium term market outlook to be better, based on limited newbuilding contracting and increased scrapping.