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Odfjell SE 3Q21 results: Strong market in the eastern hemisphere, but challenging market in the west

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Odfjell SE today reported its results for the third quarter of 2021. The report shows a stable result with a strong market in the eastern hemisphere, but challenging market in the west.


Highlights for 3Q21:

  • Timecharter earnings in Odfjell Tankers of USD 125 million compared to USD 123 million in 2Q21
  • Net result contribution from Odfjell Terminals of USD 1 million, in line with previous quarter
  • Impairment of USD 21 million related to sale agreement of Odfjell’s last remaining short-sea regional vessels in Asia
  • EBIT of USD -7 million compared to USD 11 million in 2Q21
  • Net result of USD -25 million compared to USD -8 million in 2Q21
  • Adjusted for one-offs, a 3Q21 net result of USD -4 million compared to adjusted net result of USD -10 million in the previous quarter
  • The COA renewal season is commencing. In 3Q21, Odfjell only renewed a minor part of its portfolio, but at an average rate increase of 5%


Subsequent events:

  • Concluded the sale of the two Ethylene/LPG carriers to BW EPIC Kosan Ltd with proceeds received partly in cash and partly in freely transferable shares
  • Entered into a sales agreement for the sale of three short-sea vessels. This sale marks the exit of Odfjell's presence in the short-sea trade in Asia
  • Distribution of USD 6 million from The Norwegian Shipowners’s Mutual War Risks Insurance Association to be booked in the 4Q21 results


"The chemical tanker market was strong in the eastern hemisphere, but continued supply disruptions in the west (in particular the US) remain a challenge. Fundamental demand is high, which supports our positive outlook. The exit from Gas and from the short-sea trade in Asia concludes the streamlining of our deep-sea platform. There are signs of improvements in our markets, but it will take time for a recovery to materialize and we therefore expect the underlying results in 4Q21 to be in line with 3Q21," said CEO Kristian Mørch.


Please see attached for the 3Q21 report and presentation. Tomorrow, Thursday November 4 at 08:00 CET, Odfjell SE will present the results at Felix Conference Center in Oslo, meeting room ‘Lancing’. The presentation will be held in English and can also be followed online at Odfjell.com.
 

IR Contact:
Bjørn Kristian Røed, VP/Head of Corporate Analysis & IR
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. 90 ships, which trade both globally and regionally. The tank terminal division consists of five tank terminals and is part of a network of another 11 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 14 locations around the world. Odfjell employs around 2300 staff and posted annual gross revenue of USD 939 million in 2020. 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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The chemical tanker market was strong in the eastern hemisphere, but continued supply disruptions in the west (in particular the US) remain a challenge. Fundamental demand is high, which supports our positive outlook. The exit from Gas and from the short-sea trade in Asia concludes the streamlining of our deep-sea platform. There are signs of improvements in our markets, but it will take time for a recovery to materialize and we therefore expect the underlying results in 4Q21 to be in line with 3Q21.
CEO Kristian Mørch, Odfjell SE