Eitzen still in the red

Camillo Eitzen & Co (CECO) has reported negative EBITDA of $1.4m for the third quarter, down from the $0.9m loss posted for the second quarter. The company says the result was "substantially affected" by the dilution of its ownership in Eitzen Maritime Services and the declining market capitalisation of Eitzen Chemical, which required it to book impairment losses during the third quarter. "The Board is aware of the deficit in the company's equity, and has an ongoing and constructive dialogue with its main creditor to reach a solution to this situation, either through a share issue or by conversion of debt," the company says. The sale of Eitzen Gas and its 20% share in Eitzen Ethylene Carriers will generate a substantial book profit in the fourth quarter. CECO is, however, not anticipating any improvement in profitability in the chemical tanker sector until the current oversupply has been absorbed.