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Odfjell SE: Good quarter driven by increased chemical tanker earnings

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Odfjell SE today reported its results for the second quarter of 2020. The report shows a good performance which was mainly due to increased chemical tanker earnings.

Highlights for 2Q20:

  • EBITDA of USD 82 million, compared with USD 66 million in 1Q20
  • EBITDA of USD 74 million from Odfjell Tankers, compared with USD 58 million 1Q20
  • EBITDA of USD 8 million from Odfjell Terminals, same as 1Q20
  • Net result of USD 31 million compared with USD -4 million last quarter
  • Adjusted for non-recurring items, net results are USD 17 million in 2Q20 compared with adjusted net results of USD 1 million last quarter
  • COA rate renewals up 6% in 2Q20
  • COA coverage dropped to 35% during the quarter, which enabled Odfjell to take advantage of a strong spot market. COA coverage increased towards the end of the quarter and has continued to do so into the third quarter, where it is expected to stay within a range of 45% - 55%
  • Odfjell has so far only experienced limited financial negative effects from Covid-19, but take precautionary measures if the slowdown in the global economy should accelerate
  • Crew changes continue to be extremely difficult despite many governments having signed statement to define seafarers as essential workers

“2Q20 was a good quarter for Odfjell due to a continued firming chemical tanker market and a firm spot market. We are happy to report positive figures in light of the unprecedented times of the global economy. This shows the agility and resilience of our global platform and business model. Covid-19 continues to cast high uncertainty about the future, but we are so far not experiencing any major negative impact overall in our markets. We expect 3Q20 to be impacted by usual seasonality and we therefore anticipate to report weaker, but still positive, results in the next quarter", CEO Kristian Mørch said.

Please see attached for the 2Q20 report and presentation. Odfjell SE will present the results in a live webcast at 08:00 CET today, followed by a Q&A session. Follow the audiocast at Odfjell.com/investor/webcast (https://www.odfjell.com/investor/webcast/). Questions can be posted in the webcast player during the live presentation.

IR Contact:
Bjørn Kristian Røed, Manager Investor Relations & Research
Tel: +47 40 91 98 68
E-mail: bkr@odfjell.com

The Odfjell Group is one of the leading players in the global market for seaborne transportation and storage of chemicals and other specialty bulk liquids. The Odfjell fleet comprises of approx. 80 ships, which trade both globally and regionally. The tank terminal division consists of five tank terminals and is part of a network of another 12 tank terminals partly owned by related parties. The tank terminals are strategically located at selected international shipping hubs. The Odfjell Group’s headquarters are in Bergen, Norway, and the Group has offices in 13 locations around the world. Odfjell employs around 2300 staff and posted annual gross revenue of USD 872 million in 2019. Read more on Odfjell.com.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. 

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