Odfjell 3Q21 Results Show Strong Eastern Market & Western Challenges

[By: Odfjell SE]

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.