Odfjell SE: Another quarter with positive results

Odfjell SE today reported its results for the third quarter of 2020. The report shows another quarter with positive results despite a seasonally slower market, a high number of drydockings and an unclear macro environment.

Highlights for 3Q20:

• EBITDA of USD 72 million, compared with USD 82 million in 2Q20
• EBITDA of USD 64 million from Odfjell Tankers, compared to USD 74 million in 2Q20
• EBITDA of USD 8 million from Odfjell Terminals, same as 2Q20
• Net result was USD 4 million compared to USD 31 million last quarter
• Adjusted for non-recurring items, net results were USD 5 million in 3Q20 compared to adjusted net results of USD 17 million last quarter
• COA rate renewals were up 4.5% in 3Q20 and continue the firming trend
• COA coverage normalized at 50% in 3Q20, compared to 35% in 2Q20
• Odfjell has set ambitious targets to reduce its carbon intensity by 50% by 2030 compared to 2008 levels, and have a climate neutral fleet from 2050. Both targets go beyond targets set by IMO

Subsequent events:

Odfjell has established a new pool for coated IMO2 chemical tankers, initially adding 6 vessels, and is actively working to further expand this pool
“3Q20 was impacted by seasonality and a high number of drydockings. We are satisfied with our ability to continue to report positive results in this challenging environment. We keep renewing contract rates at higher rates, which is an encouraging sign. We have taken further steps to consolidate the chemical tanker market by establishing a new coated pool which will further strengthen our operational platform in a capital-efficient way. We expect the 4Q20 results to be in line with 3Q20”, CEO Kristian Mørch said.

Source: Odfjell