OSLO, Norway, Sept. 29, 2003 (PRIMEZONE) -- Odfjell (Other OTC:ODJLY):
-- Odfjell Seachem AS enters into plea agreement with US Department of Justice accepting a fine of USD 42.5 million, paid in instalments of USD 8.5 million annually over five years
-- Despite this large fine the group's financial position remains sound
-- Bjoern Sjaastad, President/CEO, and Erik Nilsen, Vice President, agree as part of global settlement to four and three months incarceration in the US respectively
-- The company has strengthened its competition compliance program and guidelinesSince receipt of a US grand jury subpoena on 19 February 2003, Odfjell has been fully cooperating with the US Department of Justice in its investigation of possible antitrust violations in the parcel tanker shipping industry. As part of its cooperation, Odfjell ASA's wholly owned subsidiary Odfjell Seachem AS has entered into a voluntary plea agreement with the Department. Odfjell Seachem AS has agreed to plead guilty to an Information alleging a single-count violation of the US Sherman Antitrust Act for allocating customers and thereby fixing prices on certain contracts of affreightment from 1998 to 2002. There are no allegations of improper conduct with regards to spot business.
Odfjell Seachem AS has accepted a fine of USD 42.5 million. The fine is to be paid over five years in instalments of USD 8.5 million annually, the balance carrying an interest rate of about 1,2% per annum. The fine will be recorded as an extraordinary item in the financial statements in the third quarter 2003. Odfjell's book equity per 30 June 2003 was USD 581 million.
As part of the global settlement two Odfjell executives have also agreed with the Department to plead guilty to single count violations. Bjoern Sjaastad, President/CEO, has agreed to incarceration in the US for four months and a fine of USD 250,000. Erik Nilsen, Vice President, has agreed to incarceration for three months and a fine of USD 25,000. As part of the overall solution the company will reimburse the individual fines. Mr. Nilsen has been granted a salaried leave of absence.
Mr. Sjaastad has been granted a salaried leave of absence for six to nine months. Terje Storeng has been appointed interim CEO/President with effect from 30 September 2003. Mr. Storeng will resign from his current position as Managing Director of AS Rederiet Odfjell. He has been a Member of the Board of Odfjell ASA since 1994.
The Chairman B. D. Odfjell jr. said: "These are very hard terms, both for the company and for the individuals, but we have accepted our responsibility and the DOJ has appreciated our assistance and cooperation. We are glad having this issue behind us, as the alternative would be lengthy litigation. Now we can concentrate on our ongoing business, serving markets to the best of our abilities."
Since the investigations began, Odfjell ASA has strengthened its internal competition compliance program and has conducted training of all relevant personnel. The Chairman adds: "We recognise we made a mistake. Odfjell is committed to the highest ethical standards, including the area of competition. With 10 new chemical tankers to be delivered over the next three years, in addition to expansion of regional services, tank terminalling and the tank container business, the company will be even better positioned, I trust, to provide efficient high quality services."
Odfjell has initiated contact and is cooperating with the EU Commission with the purpose of resolving the issue. Various private lawsuits, asserting "class action" claims on behalf of customers, have been filed in the US against Odfjell and three other major parcel chemical tanker carriers, Stolt-Nielsen, Tokyo Marine and JO Tankers. Because these matters are still at an early stage, we are unable to give further information for the time being.
To view this press release an an Adobe (.pdf) file visit the following link: http://reports.huginonline.com/918862/123462.pdf
Additional information about Odfjell is available at: www.odfjell.com