Bergen-headquartered Odfjell has returned to profit in the third quarter ended 30 September 2015 despite a fall in revenue, aided by improved operational performance.

The Oslo-listed shipping and tank terminal firm posted a third quarter net profit of $7m, as against the loss of $9m recorded in the previous corresponding period.

Revenue, however, fell by 5.5% year-on-year to $276m due to lower contributions from chemical tankers and gas carriers, but offset by higher earnings from tank terminals.

In the chemical tankers business, Odfjell said the CPP market remained firm during most of the quarter and continued to attract swing tonnage, which helped to tighten supply/demand balance.

Activity in all the main gas carrier markets slowed down more than expected, negatively affected Odfjell’s results due to more idle time for the pool vessels. The company has eight LPG/ethylene vessels on order and the construction of four 17,000 cu m and four 22,000 cu m “is significantly delayed and we are in discussions with the yard.”

Looking ahead, Odfjell projected fourth quarter 2015 to be weaker than the third quarter for its chemical tankers on a slightly softer market.

“The continued fall in bunker prices is reducing our voyage expenses, although bunker hedging contracts for 2015 entered into in 2014 are to a certain extent offsetting this positive effect. The last of these contracts will mature in December 2015,” the company said.